Hitachi Energy sells Russian business to local mgmt

MOSCOW. Jan 31 (Interfax) - Hitachi Energy has decided to exit the Russian market and has announced the completion of the sale of its Russian business to its local management team.

This "is the best option for the employees and customers in Russia," the company said in a press release.

"The regulatory clearances are ongoing. Key clearances have been given and the company plans an orderly transfer to enable a seamless transition for all stakeholders involved, in line with regulatory requirements and international sanctions," Hitachi Energy said.

"The new local entity will operate independently in multiple locations in Russia and will be able to run the business with the experienced local staff that have worked successfully within the power grids industry for a long time. Going forward, all Hitachi Energy activities related to Russia will cease and the business relationship between Hitachi Energy and the new local entity will be conducted as independent entities," the company said.

Hitachi Energy was a joint venture between Japan's Hitachi and Swedish-Swiss company ABB Ltd that was formed in 2020 on the basis of ABB's power grid business, but at the end of 2022, ABB completed the sale of its stake in the venture and Hitachi became the company's sole owner.