Logistics company NTG has decided to dispose of its Russia business as a consequence of the war in Ukraine. The local management will take over.
Photo: PR / NTG
Logistics company Nordic Transport Group (NTG) has decided to divest its activities in Russia and Belarus, which will also impact subsidiaries in Kazakhstan and Germany.
The decision was made as a consequence of the war in Ukraine and ”comprehensive sanctions,” NTG informs WPO in a comment.
”NTG has decided to divest its activities in Russia and Belarus,” the company writes.
”We have just completed this process, which entails the former local Russian management taking over the activities in Russia as well as accompanying subsidiaries in Belarus, Kazakhstan and Germany, effective immediately.”
The former local Russian management [will take] over the activities in Russia as well as accompanying subsidiaries in Belarus, Kazakhstan and Germany, effective immediately
NTG
The divestment takes place after Chief Executive Michael Larsen in March told WPO that NTG had furloughed the majority of its employees in Russia with two months’ salary, and that the company was considering the future of its Russian activities.
”We monitor the situation closely and do our best to counsel and guide the customers affected by the decision,” Larsen said at the time.
NTG states that the divested activities contributed a revenue of approximately DKK 83m (USD 11.7m) and an operating result of around DKK 3m in 2021.
DSV shuts down as well
NTG’s statement comes only a day after DSV informed of its ongoing process of shutting down in Russia and Belarus.
In DSV’s case, the local Russian management is set to take over the business, said CEO Jens Bjørn Andersen in an interview with news agency MarketWire.
”We are in a process, in which we examine whether we can hand over our activities there [in Russia, -ed.] to our local management, meaning they basically take over,” Andersen said.
We retain our activities and the current organization in Ukraine, which will continue as an independent subsidiary within the group
NTG
WPO has previously reported that NTG had a presence in Russia with five offices and around 50 employees through company Polar Logistics, of which NTG owned the majority.
In Germany, specifically, it’s an office in the city of Mörfelden-Walldorf that will be handed over as part of this decision.
NTG’s website shows that the company has a single office in Kazakhstan, while the company has no physical presence in Belarus.
Retains Ukraine presence
Moreover, Polar Logistics has an office in Ukraine’s capital, Kyiv, where NTG does, however, have a smaller setup with three employees, Larsen explained when presenting the company’s annual report.
The Ukrainian presence isn’t encompassed by the decision to dispose of businesses, NTG asserts.
”We retain our activities and the current organization in Ukraine, which will continue as an independent subsidiary within the group,” NTG writes in its comment.
Besides those in Ukraine, Polar Logistics’ activities in Finland and Poland will continue to be part of NTG, the company states.
