The French conglomerate company Legrand has announced that it plans to leave the Russian market.
The company said on its website, “Due to recent events, including increasing operational complexity and uncertainty, Legrand has decided to divest its operations in Russia and is currently considering options for a timely and orderly transfer of its control.” Is.”
In 2022, the Russian market accounted for 1.5% of the company’s sales. Due to the decision to leave the Russian market, Legrand expects asset depreciation of €150 million. The company notes that this amount will not affect its operating loss.
Legrand has been operating in Russia since 1993. The company has two factories in the Ulyanovsk region.
The group manufactures electrical products: sockets, extension cords, chargers, including equipment for electric vehicles, intercoms and other accessories. The brands BTicino, Cablofil, Estap, Vantage, Minkels, Raritan, Kontaktor are represented in Russia
“Lagrand believes this care is the best option to continue to comply with applicable regulations and ensure local business continuity in the long term for its employees and customers,” the company said.
Legrand was one of the few French companies that continued to operate in the Russian market after the Russian invasion of Ukraine. With him, Bonduel, Leroy Merlin and Auchan remained in the country.
In total, 8.5% of companies from the EU and G7 countries will leave Russia in 2022, Forbes wrote, citing a study by Swiss economist Simon Ivett from the University of St. Gallen and Niccolò Pisani from the IMD Business School.
According to the Center for Strategic Research, at the beginning of September 2022, 34% of the largest foreign companies (600 enterprises) in Russia limited their activities to the country. Another 15% decided to leave the Russian market through the transfer of the Russian division to a new owner, and 7% announced their complete withdrawal without selling the business.