IR Blog: Cargotec has limited exposure to Russia and Ukraine
We regret to see that the conflict has escalated into war after Russia’s military attack. The attack is a violation of human rights and there is no justification for it. Our thoughts are with those people suffering from the shocking actions. Despite the horrific consequences of the war, the general impact, however, in Cargotec's overall business at this stage is low. Below some Q&A about the situation.
Updated on 27 April 2022
Q: How big a share of your sales comes from Russia and Ukraine?
A: We have had sales to Russia and Ukraine, but the countries have not been among our top 10 markets. In 2021, Russia’s share of total sales was below 1%. Ukraine's share was even smaller. We are currently winding down all activities in Russia and our sales to Russia and Belarus have been suspended. We have booked a 10 million euros impairment provision to assets that relate to our business in Russia (see Q1 2022 interim report for more information).
Q: Do you have any assembly operations or suppliers in Russia or in Ukraine?
A: We do not have any assembly operations in Russia nor in Ukraine. However, some of our suppliers have used Ukrainian and Russian steel.
Q: Do you have any employees in Ukraine and/or in Russia?
A: Cargotec employs approximately 50 people in Russia. In Ukraine we do not have own personnel.
Q: What are the long term implications of the war?
If the situation continues, we expect further uncertainties through inflation, supply and logistics challenges and general economic uncertainty.
Q: Has Cargotec supported the civil victims of the war by donating money through charities?
A: Cargotec has donated 100,000 euros to charities supporting the people in need in Ukraine through Red Cross Disaster Relief Fund (50%) and Unicef (50%).