Wärtsilä writes down its assets and operations in Russia

Wärtsilä says it will write down approximately EUR 200 million in assets and operations in Russia

“Wärtsilä suspended all deliveries, sales, orders and offers to Russia immediately after Russia invaded Ukraine. We comply with all current and future sanctions that apply to our business, ”the company’s press release says.

“In the current situation, it is not possible for Wärtsilä to continue its operations in Russia, which is why the company has decided to further reduce its operations in Russia. The reduction of operations will be carried out in accordance with local regulations. During this process, we prioritize the safety and well-being of our employees. ”

Wärtsilä makes provisions of approximately EUR 200 million in the first quarter financial reporting. The provision of EUR 200 million includes approximately EUR 75 million of impairment of goodwill and intangible assets in the Voyage business, approximately EUR 50 million of impairment related to assets located in Russia and approximately EUR 75 million of write-downs related to sanctioned projects and receivables.

Provisions are included in items affecting comparability and therefore do not affect comparable operating results.

“These actions related to our business in Russia will also have a negative impact on Wärtsilä’s operating financial figures. In 2021, operations related to Russia accounted for approximately 5 percent of Wärtsilä’s net sales, of which services accounted for approximately EUR 40 million, ”the press release says.

Wärtsilä will publish its January-March 2022 Interim Report on April 28.

By Editor

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