ZF Disengages From Russian Companies - Technology company sells Wabco Rus LLC and Wabco Vostok LLC in management buyout
- Sales negotiations were lengthy and difficult
- ZF sees no basis for continuing business activities in light of war developments
Friedrichshafen. After ZF stopped all cash transfers and deliveries to Russia immediately as the war began, suspended all business activities with Russia, and started looking for solutions for its Russian entities, the technology company has now disengaged from the Russian companies Wabco Rus LLC and Wabco Vostok LLC. As a result of a management buy-out, a group of local Russian managers took over 100 percent of the companies. The former ZF subsidiaries are no longer allowed to use ZF intellectual property or trademarks.
The negotiations on the sale of the companies Wabco Rus LLC and Wabco Vostok LLC were long-winded and challenging because ZF was dependent on the cooperation of Russian counterparts. The company Wabco Rus LLC distributed spare parts for civil buses, trucks, and trailers in Russia, while the company Wabco Vostok LLC manufactured brake components. Previously, ZF had already terminated its cooperation with the Russian vehicle manufacturer Kamaz, after ZF had already ended deliveries to the joint venture ZF Kama in February 2022. ZF had already given up its shares in the joint venture in September 2022.
Against the background of the developments since the beginning of the war, ZF sees no basis for continuing business activities in Russia and has stopped all deliveries to Russia. Business activities with Russia are suspended. The measures are in line with or even stricter than the sanctions imposed on Russia by the EU, the USA and other countries. If ZF products have entered Russia after March 2022, this has happened without ZF's knowledge and against its will. ZF strives to prevent illegal deliveries via unauthorized dealers and/or third countries to the best of its ability.
ZF does not comment on details of how the withdrawal from Russia will affect ZF financially. In total, ZF employed around 700 people in Russia at the beginning of the war. From today's perspective, it is very unlikely that ZF will resume business activities in Russia. ZF condemns Russia's war against Ukraine and has launched a variety of measures to help Ukrainian employees in Ukraine and in Central and Eastern Europe.
- Technology company sells Wabco Rus LLC and Wabco Vostok LLC in management buyout
- Sales negotiations were lengthy and difficult
- ZF sees no basis for continuing business activities in light of war developments
Friedrichshafen. After ZF stopped all cash transfers and deliveries to Russia immediately as the war began, suspended all business activities with Russia, and started looking for solutions for its Russian entities, the technology company has now disengaged from the Russian companies Wabco Rus LLC and Wabco Vostok LLC. As a result of a management buy-out, a group of local Russian managers took over 100 percent of the companies. The former ZF subsidiaries are no longer allowed to use ZF intellectual property or trademarks.
The negotiations on the sale of the companies Wabco Rus LLC and Wabco Vostok LLC were long-winded and challenging because ZF was dependent on the cooperation of Russian counterparts. The company Wabco Rus LLC distributed spare parts for civil buses, trucks, and trailers in Russia, while the company Wabco Vostok LLC manufactured brake components. Previously, ZF had already terminated its cooperation with the Russian vehicle manufacturer Kamaz, after ZF had already ended deliveries to the joint venture ZF Kama in February 2022. ZF had already given up its shares in the joint venture in September 2022.
Against the background of the developments since the beginning of the war, ZF sees no basis for continuing business activities in Russia and has stopped all deliveries to Russia. Business activities with Russia are suspended. The measures are in line with or even stricter than the sanctions imposed on Russia by the EU, the USA and other countries. If ZF products have entered Russia after March 2022, this has happened without ZF's knowledge and against its will. ZF strives to prevent illegal deliveries via unauthorized dealers and/or third countries to the best of its ability.
ZF does not comment on details of how the withdrawal from Russia will affect ZF financially. In total, ZF employed around 700 people in Russia at the beginning of the war. From today's perspective, it is very unlikely that ZF will resume business activities in Russia. ZF condemns Russia's war against Ukraine and has launched a variety of measures to help Ukrainian employees in Ukraine and in Central and Eastern Europe.
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