Volvo Group comments on impact of Ukraine crisis

Volvo Group sign

Volvo Penta’s parent company Volvo Group has issued a statement on the financial impact of the continuing Russia-Ukraine conflict.

The company states that since the war in Ukraine started and sanctions were imposed, ‘all sales, service and production in Russia have been suspended. The Volvo Group has total assets of approximately SEK 9 billion related to Russia, of which approximately SEK 6 billion is cash items that could be materialised over the coming years.’

Headquartered in Gothenburg, Sweden, Volvo Group confirms in the statement that in the first quarter 2022, assets amounting to approximately SEK 4 billion will be provided for and have a negative impact on operating income, primarily in the financial services segment.

In 2021, approximately 3 per cent of the group’s net sales were attributable to Russia.

The statement concludes: ‘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.’

The Volvo Group was founded in 1927, employs almost 95,000 people and serves customers in more than 190 markets. Volvo Penta North America recently announced its new president.

In 2021, net sales amounted to about SEK 372 billion (€37 billion). Volvo shares are listed on Nasdaq Stockholm.

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This article was written and/or edited by the UK-based MIN team.

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