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April 6, 2022

Vestas to withdraw from Russian market over Ukraine invasion

The company has halted its four wind farm projects that are currently under development in the country.

Understand the impact of the Ukraine conflict from a cross-sector perspective with the GlobalData Executive Briefing: Ukraine Conflict


Danish wind turbine manufacturer Vestas has decided to withdraw completely from Russia over Moscow’s incursion into Ukraine.

The company, which operates two facilities in Russia, announced the move at its annual general meeting.

It has stopped new commercial activities in the country and plans to halt its four Russian wind farm projects that are currently under development, reported RTE.

The four wind projects are named Novoalekseevskaya, Grazhdanskaya, Ivanovskaya and Pokrovskaya.

Vestas was chosen by a consortium that includes Russia’s Gazprombank and Finnish utility company Fortum to develop the four projects, whose total capacity is 253MW.

The company has been developing these projects since September last year.

Vestas had previously stated that it would proceed with ongoing contracts, but now following a review, it has decided to withdraw from the Russian market.

renews.biz quoted the company as saying in a statement: “In light of the invasion, Vestas stopped new commercial activity in Russia in early March.

“After this decision, Vestas began reviewing different scenarios, including if we could fulfill our existing obligations, and how we could ensure an orderly withdrawal from Russia, if the war continued.

“Following this review and how the situation has evolved, we have taken the decision to withdraw from Russia.

“The withdrawal aims to ensure the safety and livelihood of our employees in Russia, as well as safeguard Vestas’ interests, through an orderly transfer of our business in compliance with international and local law, which entails certain activities may continue during a transition period.”

Vestas added that it ‘condemns the Russian government’s invasion of Ukraine and the atrocities reportedly committed by the Russian army and the growing humanitarian crisis caused by the invasion’.

The company has around 1GW of installed wind energy capacity in Russia, with Fortum being its only client in the country.

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