Honeywell to completely pull its business out of Russia
The U.S. multinational conglomerate Honeywell International reported that it plans to completely pull its business out of Russia as a consequence of its invasion of Ukraine.
With 97,000 employees and its headquarters in Charlotte, North Carolina, USA, Honeywell operates primarily in the business areas of aerospace, building technologies, materials and performance technologies, and safety and productivity solutions.
The conflict between Russia and Ukraine, which began in February 2022, continues to have a negative impact on the company’s business and operations and creates global economic and political uncertainty.
Financial results of Honeywell (Millions of dollars)
In response to the Russian invasion of Ukraine, Honeywell suspended substantially all of its sales, distribution and service activities in Russia and Belarus (the Suspension).
In June 2022, the Company approved a plan to liquidate its existing business and operations in Russia (the Liquidation).
Then, during September and October 2022, the company completed the sale of three entities domiciled in Russia.
For its remaining two entities, Honeywell is pursuing a voluntary liquidation strategy to completely exit its business and operations in Russia.
The Suspension and Liquidation affects all reportable business segments, with the most significant impact on its High Performance Materials and Technologies business segment.
In light of the humanitarian crisis created by the conflict between Russia and Ukraine, the company remains focused on efforts to assist and support its employees and their families affected by the conflict.
In March 2022, Honeywell created a Ukraine Relief Fund, which allows employees to make donations to support organizations providing direct assistance to Ukrainians and those helping them in the midst of this humanitarian crisis.
When the conflict began, the company accelerated payroll payments to those affected by the conflict and the initial Suspension of its operations.
The effects of the initial suspension and curtailment of operations on revenues, net income, net assets or cash flow from operations for the periods recognized are not material to its consolidated results of operations and consolidated financial position.
For the year ended December 31, 2021, sales revenues in Russia represented approximately 1% of its global revenues, and assets in Russia represented less than 1% of its total assets.