Business in Russia is getting harder

Economy Minister Franz Fayot discusses the repercussions of the war in Ukraine on the economy and Europe’s often naive attitude towards autocracies.

–
–

Jan de Nul in Capellen has had no further projects in Ukraine since the annexation of Crimea and currently has none in Russia either, all ships have been withdrawn from this country. The office of the Belgian-Luxembourgish suction dredging company in Moscow employs three people and will be closed. “We can assume that in the near future, perhaps in the long term, it will not be possible to do business in Russia,” says the Luxembourg director of Jan De Nul, David Lutty.

Concern at ArcelorMittal

ArcelorMittal is concerned about the evolving situation in Ukraine and the impact this will have on its colleagues in the country. The company operates a plant on the Ukrainian site of Kryvyi Rih. Plans have been drawn up to help colleagues on site. “As far as our plant is concerned, our team is working to reduce production to a technical minimum and production in our underground mines will be stopped,” explains a company spokesperson.

The battery box manufacturer Accumalux, which has a factory in Toljatti in Russia, is in the meantime studying the possibilities: import and export have become very difficult. “The products manufactured in our plant in Russia exclusively serve the civilian automotive battery market, in particular Renault and its subsidiaries,” the company explains. Part of the jobs in the Grand Duchy depend directly on production in Russia.

No impact on the OCSiAl plant in Differdange

The world’s largest producer of graphene nanotubes, according to its own words, OCSiAl, headquartered in Leudelange, has Russian roots. The company was founded in 2009, among others, by Russian physicist Mikhail Predtechenskiy. Among the first investors was the Russian public investment fund Rusnano. The company has a research center in Novosibirsk and a branch in Moscow.

However, OCSiAl’s activities are not affected by the sanctions, writes the company. “OCSiAl is a global company headquartered in Luxembourg since its inception and all of its activities, regardless of location, are wholly owned subsidiaries of the Luxembourg holding company,” the statement said. “As a result, our subsidiaries are protected by national foreign investment protection laws in all countries where they operate.”

Nor would the crisis change anything in the massive investment projects in Differdange. OCSiAl is building a nanotechnology center in Luxembourg. The project represents an investment volume of around 300 million euros. The company aims to complete the production facility by 2024 and thereby create 325 new jobs.

An important market for Paul Wurth

Plant builder Paul Wurth also has a representative office in Ukraine. Russia is one of its main markets. “Due to ongoing projects and business, especially in Russia, we have exposure in the region. However, we will fully respect all the European and international sanctions imposed which could affect our activities in the region, even if we will endeavor to respect our contractual obligations”, writes the company requested by the Luxembourg word.

Paul Wurth has only a limited number of direct colleagues in the conflict zone, “but we are in constant contact with each of them and we do everything possible to give them the means and the support they need , as well as their families, to leave the area and, if they wish, to seek safety in the surrounding countries where Paul Wurth has offices,” the statement said.

follow us on Facebook, Twitter and subscribe to our 5 p.m. newsletter.

On the same subject

international" data-article-size="related">

Since the launch of the Russian offensive on February 24 in Ukraine, Russia has seen itself increasingly isolated on the international scene. A look back at the stages of the armed conflict and the sanctions taken against Moscow.

–

–

–

–

–

While Russian troops persevere in their offensive, the resolution of the conflict between Russia and Ukraine seems to be taking the lead in negotiations, according to researcher Thibault Fouillet.

–

–

–

–

–

Economy Minister Franz Fayot discusses the repercussions of the war in Ukraine on the economy and Europe’s often naive attitude towards autocracies.

–

–

–

–

–

Extension of compulsory education

–

The OGBL, the UEL and the Chamber of Trades doubt that the extension of compulsory education is the best way to fight against school dropout.

–

–

–

–

–

With the conflict in Ukraine

–

Even before the Russian invasion, gas prices were extremely high. The Minister of Energy reassures on the security of supply.

–

–

–

–

–

New tax transparency law

–

The Russian Federation is trying to bring back expatriate capital and related tax revenues. Luxembourg, the leading European “investor” in Russia, is obviously concerned. The money of large fortunes and Russian companies passing through the Grand Duchy must circulate differently. The beginning of a puzzle for lawyers.

–

–

–

–

–

–
–

–

Related posts:

"FTC Rules TurboTax Engaged in Deceptive Advertising, Bans Free Services"

Central Bank: Leading financial institutions to support real estate sector restructuring and mergers...

Your insurance agent in CLEMENCY

Flemish Prime Minister Jambon: "Covid Safe Ticket at a wedding, cafe or restaurant, that goes too fa...