SKF to exit Russia completely

Company ceasing all business, engagement, and investment, and divesting Russian operations

SKF, specialists in bearings, seals, lubrication systems, and machine health assessment, have decided to cease all business and operations in Russia. The Swedish company’s intention is to divest the business in a controlled manner with the aim of ensuring a future for SKF employees in Russia.

Rickard Gustafson, president and chief executive officer, said: ‘The Russian invasion of Ukraine has a severe effect on our operations in both Ukraine and Russia. Throughout this horrible situation we have, as always, respected all sanctions and export controls.

‘We have concluded that it is impossible for us to continue our operations in Russia, as the basis and stability for our business does not exist.’

He continued: ‘Since the start of the invasion, when we stopped our exports to Russia, we have evaluated the situation daily to understand all consequences of any action taken. As a truly global company, it was important from start to take the time necessary to find a solution that would consider the impact on our employees and our overall business.

‘We have now decided to cease all SKF’s operations, engagement, and investment in Russia. Our intention is to divest our Russian operations, with the aim to secure a future for our colleagues.’

SKF say a write-down related to the exit of approximately SEK500 million (£40.5 million) will be recognized in the second quarter. Sales in Russia accounted for approximately 2% of the Group’s total turnover in 2021.