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Stock Market
8 Apr 2022
Volvo Suffers $423 Million Loss after Suspended Operations in Russia
The Index Today
Volvo AB revealed that it had suffered operating losses totaling $423 million in Russia after the country invaded Ukraine in late February.
According to Bloomberg News, the Swedish company announced in a statement that all of its business in the country have been halted entirely in the wake of the Ukraine-Russia crisis which broke out nearly two months ago, and the resulting sanctions on the Kremlin. This comes after Volvo attributed 3% of its net income in 2021 to its Russian customer base.
Bloomberg News reported that the company disclosed having Russian assets valued at 9 billion kronor, among which 6 billion kronor are categorized as cash items associated with its leasing venture funded through the bond market.
Claes Eliasson, a spokesperson for the company said, “As we believe that customers’ credit losses will increase, we will of course receive lower income from clients but still pay on the bonds as they mature.”
©Photo: Volvo Launch Event
