Finland-based supplier Wärtsilä announces an EUR 200m provision linked to the company’s Russian business.
Wärtsilä announces a significant provision tied to the company’s business in Russia following the country’s invasion of Ukraine.
The total write-off comes to roughly EUR 200m, and Wärtsilä will thus will make a provision to be booked in the company’s first-quarter report. The write-off is related to the Finnish supplier’s assets and business operations in Russia, according to a statement Wednesday.
The war in Ukraine, which has been going on for almost two months, means that Wärtsilä ”has decided to further downscale its Russian operations,” reads the announcement.
According to Wärtsilä, the roughly EUR 200m concerns an impairment linked to ”voyage-related goodwill” of EUR 75m and intangible assets, while approximately EUR 50m are related to provision of assets in Russia. And finally, write-offs of around EUR 75m are linked to trade-sanctioned projects and receivables.
According to the company, it ”immediately” suspended all deliveries, sales, orders and supplies after Russia’s attack on Ukraine.
In 2021, Russia-related assets represented roughly 5 percent of Wärtsilä’s net sales, according to the statement. Service net sales were at approximately EUR 40m.
Wärtsilä presents its Q1 financial report on April 28.
