Wärtsilä Corporation is to write-off approximately EUR 200 million (about $217 million) related to assets and business operations in Russia.
A statement released by the company today says:
“Wärtsilä strongly condemns the war in Ukraine. Human rights, safety and prosperity are very important for Wärtsilä, and we value a peaceful and stable business environment wherever we operate.
“After Russia’s attack on Ukraine, Wärtsilä immediately suspended all deliveries, sales, orders, and bidding to Russia. We are complying with all current and will comply with all future trade sanctions applicable to our operations.
“In the current environment, it is not viable for Wärtsilä to maintain activities in Russia and therefore the company has decided to further downscale its Russian operations. Adjusting the operations will be done in accordance with local regulations. During this process our priority continues to be the safety and wellbeing of our employees.
“As a result of these steps Wärtsilä will make provisions of approximately EUR 200 million in the Q1 financial reporting. The EUR 200 million provision includes approximately EUR 75 million of impairment of Voyage related goodwill and intangible assets, approximately EUR 50 million of impairment related to assets in Russia and approximately EUR 75 million write-offs related to trade-sanctioned projects and receivables. The provisions will be included in items affecting comparability and therefore, do not impact comparable operating profit.
“All these actions regarding our business in Russia will also have a negative impact on Wärtsilä’s operational financials. Russia related activities accounted for approximately 5% of Wärtsilä’s net sales in 2021, of which service net sales was approximately EUR 40 million.”