Volvo Group reports financial impact from Ukraine
By Mike Brezonick08 April 2022
The Volvo Group has issued a statement concerning the financial impact of the Ukraine war on the company’s financials.
Since the war in Ukraine started and sanctions were imposed, all sales, service and production activities for Volvo Group in Russia have been suspended.
The Volvo Group said it has total assets of SEK 9 billion (approximately $953 million) related to Russia, of which approximately SEK 6 billion (approximately $635 million) is cash items that could be materialized over the coming years.
In the first quarter 2022, assets amounting to approximately SEK 4 billion (approximately $424 million) will be provided for and have a negative impact on operating income, primarily in the Financial Services segment.
In 2021, Volvo said that approximately 3% of the group’s net sales were attributable to Russia.
The company’s statement added, “The Volvo Group expresses its deepest sympathy with all the people suffering due to the devastating war in Ukraine and is committed to supporting affected employees, families and communities.”