OSLO, June 29 (Reuters) – The Swedish engineering group Sandvik (SAND.ST) will wind up its operations in Russia and book a one-time fee of SEK 1 billion (USD 98.3 million) in its earnings report for the second quarter. said on Wednesday.

Sandvik put its Russian operations on ice on February 28 after the invasion of Ukraine and has since evaluated the situation.

A large number of Western companies have decided to leave Russia in recent months, some by selling their local operations and others by closing it down. Read more

In 2021, approximately 3.6% of Sandvik’s group revenues came from Russian customers. The group has no production in the country but about 900 employees in sales and service.

The fee that will be booked consists of a write-down of SEK 700 million and a provision of SEK 300 million related to personnel costs.

“Depending on how the settlement procedures progress, additional costs may arise in the coming quarters,” Sandvik said.

($ 1 = 10,1684 Swedish kronor)

Reporting by Terje Solsvik, editing by Stine Jacobsen

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