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Sulzer counts cost of withdrawing from Russia

Sulzer building
Sulzer has been grappling with its Russian connections for several years. Keystone / Melanie Duchene

Pulling out of Russia and Poland will cost Swiss industrial company Sulzer at least CHF125 million ($130 million) in depreciation costs, the group has announced.

The sum will be booked in the company’s half year results, which will be published on July 29. Then it will be possible to determine the effect on net profits.

Sulzer, which makes industrial pumps and compressors, made CHF86 million in net profits in the first half of 2021 and CHF141 million for the full year.

But the company was forced to pull out of Russia and close down its Polish plants after the Russian invasion of Ukraine in February.

The company said on FridayExternal link that the total bill of writing off its assets in Russia and Poland could rise to CHF135 million. But the group said this would have no material impact on operational results.

Sulzer is among several Swiss companies that were forced to pull out of Russia since the invasion of Ukraine in February.

But the company, which has been operating from the northern Swiss city of Winterthur since 1834, had already been grappling with its Russian connections for several years.

Russian oligarch Viktor Vekselberg bought a substantial share of the company in 2007 through his Renova investment vehicle and later raised this stake to more than 50%.

Renova was forced to reduce this stake in 2018 after Vekselberg was named on a United States sanctions list.

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