Electrolux Professional leaving Russia, handing operations to local mgmt

STOCKHOLM. July 11 (Interfax) - Electrolux Professional, a Swedish appliance manufacturer, has decided to cease operations in Russia and divest its business in the country to local management after concluding "that business continuity in Russia, in the current situation, is not feasible."

This will incur a cost of SEK35 million that will be treated as items affecting comparability in the second quarter of 2022, the company said in a press release.

"Electrolux Professional is respecting all sanctions and export controls to Russia. As a result of the continued war and sanctions, we foresee that we will not be able to sell and service products in Russia medium to long term," CEO Alberto Zanata said in the press release.

"Therefore, we have concluded that a controlled divestment of the Group's subsidiary in Russia to the local management, is the best way to ensure our continued compliance with sanctions, and in a responsible way conclude the relationships with our colleagues in Russia that have been highly regarded team members of our Group for many years," he said.

Electrolux Professional has 25 employees in Russia, and in 2021 sales in the country accounted for about 1% of group sales.

Besides the exit cost of SEK35 million, the decision to leave Russia is not expected to have any material effect on the group's profit or profitability, the company said.

Electrolux's shares were down 0.2% in trading in Stockholm on Monday. They have dropped 33% since the start of this year.