Siemens Freezes New Business in Russia

BERLIN—German industrial conglomerate Siemens AG said it has halted all new business and international deliveries to Russia, joining a string of Western companies from oil majors to car makers that have frozen business relations with Russia.

“We fully support all sanctions. To this end, all new business in and international deliveries to Russia are on hold while we evaluate the full implication of all sanctions,” the company said.

As for its existing business in the country, Siemens said that it will continue with local service and maintenance-related activities while “ensuring strict adherence to sanctions.”

Siemens has had dealings with Russia since the 1850s and after the end of the Soviet Union, the company has been active in Russian energy, communications and medical technology sectors.

Siemens has delivered high-speed trains that now serve the Moscow–St. Petersburg route. Until recently, the company had been a vocal champion of Germany’s economic rapprochement with Russia. Russia accounts for around 1% of the company’s global sales.

Energy company Siemens Energy AG, which was spun off from Siemens in 2020, said Wednesday that it also would stop all new activities in Russia as it reviews the impact of sanctions.

Siemens Energy supplies power producers and transmission-grid operators in Russia and has under 1,000 employees in the country.

Both Siemens and Siemens Energy said they will be donating to the Red Cross in the humanitarian effort to help Ukraine.

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