The German machine-building concern Siemens has begun the procedure for terminating all production and operating activities in Russia. This is stated in the message of the company on May 12, citing the chief financial officer of Siemens, Ralph Thomas. Siemens' business activities have been negatively affected by "comprehensive international sanctions" against Russia, which have hampered the company's activities in the country related to rail communications and maintenance, the report says.
Siemens' exit from the Ural Locomotives joint venture will not stop the production of locomotives and Lastochkas, Vladimir Savchuk, deputy general director of the Institute for Natural Monopoly Problems (IPEM), believes. But this will create difficulties in replacing components not localized in Russia with supplies from abroad using logistics schemes “adapted” to sanctions restrictions, the expert says.
According to him, components manufactured in European and Asian countries can be supplied under the new schemes. The volume of such components is, according to expert estimates, 20-40% of the cost of rolling stock, says Savchuk.
Siemens since May 13 broke all service contracts with Russian Railways, including the maintenance of Sapsan, due to anti-Russian sanctions. Russian Railways will continue its own maintenance of the Sapsan and Lastochka trains after the German Siemens leaves Russia, Russian Railways reported.
