Electrolux plans to exit Russia
The appliance company paused its operations in Russia when the war in Ukraine started. Electrolux has now decided to exit Russia and divest the business to local management through a sale of its Russian subsidiary.
With this decision, the company will record a capital loss of approximately SEK 350 million – affecting the operating income for Business Area Europe in the third quarter of 2022.
"Russia’s invasion of Ukraine and the following sanctions have made it impossible for Electrolux to continue its business in the country. The decision to divest the Russian business to local management is intended to enable a responsible and controlled exit," the company writes in an update.
Electrolux continues to state that the divested company will continue to service appliances previously sold by the company in Russia. Electrolux has no production in Russia and will no longer supply any appliances to the divested company.
In 2021 Electrolux sales in Russia accounted for 4% of Business Area Europe sales and for 1.6% of Group sales.