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French energy management company Schneider Electric has announced that it is planning to divest its operations in Russia and Belarus to local management.
The company has signed a letter of intent to sell Schneider Electric Russia’s operations to the local leadership team.
The deal’s completion is subject to the approval of local authorities.
Schneider Electric said that the move came after a careful review of the business’ setup and options.
The company currently generates around 2% of its total sales from Russia.
It is estimated that the sale of the assets will result in €300m ($316.2m) of Schneider Electric’s net book value being written off.
The company also expects to make a non-cash reversal of the currency translation reserve associated with these activities, which is currently estimated at €120m.
In a statement, Schneider Electric said: “As a result of the sale and wind-down of its presence in Russia, the company expects to write-off up to €300m of net book value, and to make a non-cash reversal of the currency translation reserve associated with these activities currently estimated at €120m.”
Since February, Schneider Electric has suspended all its new investments and the international delivery of new project orders in Russia and Belarus.
The company said that it is planning an ‘orderly’ transfer for its 3,500 employees in Russia and Belarus, aiming to allocate resources to support them.
Based in Rueil-Malmaison, Schneider Electric supplies energy and automation digital solutions for efficiency and sustainability.
The company combines energy technologies, real-time automation, software and services to serve homes, buildings, data centres, infrastructure and industries.
Earlier this month, wind turbine manufacturer Vestas decided to withdraw completely from Russia over Moscow’s incursion into Ukraine.
The company has suspended commercial activities in the country and plans to halt its four Russian wind farm projects that were being developed at the time of the invasion.