Swedish companies halt production, sales in Russia

Russia-Ukraine crisis

Russia-Ukraine crisis

Agency Report

Several Swedish companies said Monday they had either halted production, stopped sales or paused deliveries to Russia following the country's invasion of Ukraine.

Truck maker Volvo said it had informed suppliers on Friday that it would no longer accept deliveries to the factory in Kaluga, some 150 kilometres (93 miles) southwest of Moscow.

"As a consequence the production line was stopped this morning," Volvo spokesman Claes Eliasson told AFP.

"The reason is in part the sanctions that have come into effect and the general security situation in the region," he added, saying production would remain halted "until further notice".

Sales were stopped in Russia as well as in Ukraine due to the deteriorating security situation as Moscow's invasion of its neighbour entered its fifth day.

Sales in Russia and Ukraine accounted for 3.5 percent of the truck maker's revenue in 2021 and around 5,000 trucks are produced at the Kaluga plant a year, according to Eliasson.

Carmaker Volvo Cars - a separate company from Volvo - meanwhile said it was also cutting off the Russian market.

"Considering the potential risks associated with trading material with Russia, including the sanctions imposed by the EU and US, Volvo Cars will not deliver any cars to the Russian market until further notice," spokesman Ben Foulds told AFP.

Telecom giant Ericsson will also halt deliveries to Russia.

"Ericsson is investigating how our operation could be affected by the events and the sanctions," spokeswoman Mikaela Idermark Stern told AFP.

"Ericsson has until further notice decided to halt deliveries to clients in Russia while we are conducting our analysis," she added.

In neighbouring Denmark, shipping giant Maersk said it was also preparing to comply with sanctions, but said no decision had been taken yet.

"Our preparations include a possible suspension of Maersk bookings to and from Russia on Ocean and inland," the company said in a statement to AFP.

EU countries have imposed a slew of sanctions against Russia following the invasion.

Over the weekend European Commission chief Ursula von der Leyen announced plans to cut some Russian banks out of the SWIFT interbank messaging network and ban all transactions with Russia's central bank.

AFP

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