HP Inc. Russia

On November 1, 2015, the American computer manufacturer HP officially split into two companies. In Russia, instead of one HP representative office, Russia also appeared two offices:

• HP Inc. Russia (computers and printers) and
• Hewlett-Packard Enterprise HPE Russia (, and servers ON enterprise solutions).

Since November 1, HP has been operating as two independent legal entities in Russia.

Performance indicators

2022: Loss of 1.4 billion rubles due to withdrawal from Russia

HP Inc. wrote off 1.4 billion rubles ($23 million) in connection with its departure from Russia. This is stated in the financial year 2022, which the American manufacturer of computers and printing equipment announced in November 2022.

The indicated amount of losses includes expenses for severance pay for employees, cancellation of contracts, write-off of inventory and other one-time costs associated with leaving, the document says.

HP lost 1.4 billion rubles due to leaving Russia

At the same time, the costs associated with the curtailment of Russian business occupied only a small part of the total costs of HP Inc. The latter in August-October 2022 reached $13.39 billion.

According to the results of the 12-month period ended October 31, 2022, the company's revenue amounted to $63 billion, which is 0.8% less than a year earlier. At the same time, HP's net profit halved - from $6.5 billion to $3.2 billion.

At the end of 2022, the revenue of the American company HP Inc. in Russia (Aichpi Inc LLC) decreased by 64.3% - to 15,023 million rubles. The indicator includes revenue from the financial statements for 2021-2022. Excluding VAT. In the ranking "TAdviser100: The largest IT companies in Russia 2023," such an indicator allowed the company to take 39th place.

Since the beginning of March 2022, HP has stopped accepting orders and supplying equipment to the Russian market, and a few months later the company announced a complete curtailment of business in the country. At the reporting conference following the results of the second quarter, management tentatively estimated the consequences of leaving the Russian market on an annual scale at $1 billion in revenue.

FG Finam analyst Leonid Delitsyn calculated that if net revenue amounted to $63 billion, and Russia accounted for about 1 − 1.5% of the total, HP lost about $630 million to $1 billion.

Experts estimated that the company could pay 500 Russian employees about $3 million of severance pay, two-thirds of the amount of losses fell on canceled contracts, and also included expenses for warranty obligations, office rental, warehouse maintenance.

After HP officially left Russia, its products began to be imported using a parallel import mechanism. Laptops, Xiaomi as well as PCs,, Dell, can be purchased as analogues on the Russian market, Acer Samsung Asus experts remind.^[1]

History

2024: IT distributor Treolan recovered 120.7 million rubles from HP Inc. due to leaving Russia

In early February 2024, it became known that the Russian IT distributor Treolan, which is part of the Lanit group, won the lawsuit with HP Inc. We are talking about the proceedings related to the departure of the American company from the Russian market in the current geopolitical situation. The total amount of recovery from HP is 120.7 million rubles. Read more here.

2023: Liquidation of the company, loss of $23 million

In November 2023, HP Inc LLC, a Russian subsidiary of the American computer and printer manufacturer HP Inc., began the liquidation process. This is evidenced by the data of Fedresurs, as well as the Unified State Register of Legal Entities (USRUL).

HP Inc. Limited Liability Company: The organization is in the process of liquidation... The term for the liquidation of a limited liability company is October 23, 2024, - says the extract from the Unified State Register of Legal Entities.

HP Inc begins liquidation process

According to RBC, the Aichpi Inc company was actively preparing for its disappearance from the Russian market. By November 2023, her contract with the Metropolis business center, where she rented office space, was terminated. In addition, the contracts for the rental of company cars were terminated and the services for leasing equipment for technical support and maintenance of its equipment were completely stopped.

All this could speed up the process of liquidation of Aitchpee Inc, if not for one "but." As the legal adviser to the intellectual property practice of the EBR law firm and expert of the educational platform Moscow Digital School Igor Sensinov told the publication, the Russian subsidiary HP Inc. has a whole list of lawsuits worth more than 150 million rubles, and their presence can not only slow down the process of closing the company, but also cancel it altogether. Maxim Rumsky, general director of the Paladin group of companies, noted that, like many foreign companies that left Russia, HP Inc left customers without support.

According to a RBC source in the electronics market, the share of HP Inc. in the Russian laptop market in January-September 2023 was 3.3% in unit terms and 2.5% in monetary terms. A year earlier, these indicators were measured at 20 and 16.5%, respectively. In the all-in-one segment, HP's share in units decreased from 22% to 5.5%, in money - from 17.5 to 6%.^[2]

2022: Curtailment of business in Russia

At the end of May 2022, HP Inc. announced a complete curtailment of business in Russia two months after the company stopped the supply of products to the country. The reason for the decision of the American manufacturer of computers and printers is related to the Russian military special operation in Ukraine.

Given the current situation and long-term prospects for Russia, we decided to stop our activities in the Russian Federation and began the process of completely closing the business in this country, - said in a statement HP, which was made as part of the publication of the company's quarterly reports on May 31, 2022.

HP Inc. announced the complete winding down of its business in Russia

By this day, about 200 people work in the Russian representative office of HP. The company promises to support them.

According to HP CFO Mary Myers, in 2021 the company earned about $1 billion in Russia. Due to leaving the Russian Federation, the company will reduce profit in the third quarter by an additional 4 cents per share, she said. In addition to curtailing business in Russia, profit will be affected by real estate transactions and the purchase of video conferencing solutions manufacturer Poly for $3.3 billion - for these reasons, HP's profit will be reduced by 11 cents per security, Myers warned.

As of June 1, 2022, the website of HP's Russian office is still open. The timing of the complete departure from the Russian Federation in the company by this day is not called.

Since the beginning of March 2022, HP has not supplied equipment to the Russian market, orders have not been accepted either. Then the company said that HP suspended shipments of items that fell under restrictions.

We are carefully studying the requirements of the US administration for any impact that could affect the company's activities in the region, the manufacturer said in a March statement.[3]

2021: Revenue growth in Russia by 37.6% to 42,101 million rubles

At the end of 2021, HP Inc. revenue in Russia amounted to 42,101 million rubles, an increase of 37.6% compared to 2020, which allowed it to take 14th place in the ranking of TAdviser100: The largest IT companies in Russia 2022. The revenue of Eichpi Inc LLC was taken from the financial statements for 2020-2021. excluding VAT.

2020: Revenue in Russia - 30,590 million rubles

At the end of 2020, HP Inc. revenue in Russia amounted to 30,590 million rubles.

2019: Revenue growth by 17.6% to RUB 29.1 billion

At the end of 2019, HP Inc. (Aichpi Inc LLC) took 12th place in the Ranking TAdviser: the 50 most profitable representative offices of foreign IT companies in Russia. The company's revenue for 2019 amounted to 29,185,455 thousand rubles, which is 17.6% more than in 2018.

2018

Revenue - 24.8 billion rubles.

HP Inc. Revenue (Eichpi Inc LLC) for 2018 amounted to 24,809,532 thousand rubles.

Court decision on payment of 108 million rubles in favor of RSP

In February 2018, the ninth arbitration court of appeal put an end to the two-year-long proceedings between HP Inc. (originally Hewlett-Packard) and the Russian Union of Copyright Holders (RSP), which is headed by director Nikita Mikhalkov. The company was ordered to pay 108 million rubles in tax on blanks.

According to the court order, the Russian division of HP Inc. must pay a debt of 101 million rubles and 7 million rubles in interest on payments for free reproduction of phonograms and audiovisual works for personal purposes (the so-called "tax on blanks").

Nikita Mikhalkov's union recovered 108 million rubles from the Russian office of HP

The law requires manufacturers and importers of copying equipment, as well as audio, video and other types of media, to pay 1% of the cost of these products in favor of authors, performers and producers of phonograms. The accredited organization to collect these payments is the RSP.

In RSP and CJSC "Hewlett-Packard A.O." concluded an agreement in June 2013, and in 2014 the union began to notice that the information about the imported equipment differs from the data of the Federal Customs Service. Thus, the complaint indicated that from October 26, 2010 to June 30, 2015, HP imported equipment and material media totaling more than 28 billion rubles to Russia, while it did not provide information on the import of goods worth more than 10 billion rubles to the RSP.

RSP filed a lawsuit in December 2015, and the initial amount of claims was 114 million rubles. The trial court upheld the plaintiff's claims, as did the appeal, but the Intellectual Property Rights Court in November 2017 overturned the penalty and referred case No. A40-240774/2015 to a new review by the ninth arbitration court of appeal. 

HP failed to achieve a significant reduction in the recovery amount. Thus, the plaintiff himself refused part of the claims, in connection with which the appeal that re-considered the dispute recovered almost 108 million rubles in favor of the plaintiff from the representative office of the American computer manufacturer.^[4]

2015

Lawsuit from RSP for 114 million rubles

On December 28, 2015, it became known that the Russian Union of Copyright Holders (RSP), headed by film director Nikita Mikhalkov, filed a lawsuit against the Russian subsidiary HP Inc. This is not the organization's first complaint about electronics manufacturers.

RSP filed a lawsuit against CJSC Hewlett-Packard A.O. in the arbitration court, Moscow demanding recovery in the amount of 113.9 million. rubles It is reported with RBC reference to the court website, where the case card is available.

Nikita Mikhalkov's Union filed a lawsuit against HP Inc. for 114 million rubles

The grounds for the claim are not named. The court accepted it on December 10, 2015, and preliminary hearings are scheduled for February 19, 2016.

As the head of the RSP Andrei Krichevsky told RBC, CJSC Hewlett-Packard A.O. and RSP signed an agreement on the payment by the company of a fee for free reproduction of phonograms and audiovisual works for personal purposes in 2013. In the second half of 2014, the information provided by HP Inc. in the RSP began to diverge from the data of the Federal Customs Service.

So, according to the latter, from 2010 to 2015,  NR declared goods included    in the list of equipment for free playback of phonograms and media for a total of more than 30 billion rubles. At the same time, the RSP did not receive information about imported goods subject to the union's collection in the amount of more than $11 billion. This served as the basis for filing a lawsuit, Krichevsky noted.

Earlier, an organization led by Mikhalkov has already brought large lawsuits against electronics manufacturers. The largest were claims against the Russian representative office of Panasonic - Panasonic Rus. At first, the RSP demanded 234 million rubles, but after appeals the amount of recovery was reduced to 88 million rubles.

Alexey Voronkov appointed head of HP Inc. in Russia

The head of the Russian office of HP Inc. was Alexey Voronkov, who previously headed the division of personal systems and printing devices (HP PPS) as vice president.

1990-2014: History of HP Russia

Main article: HP Russia

Until 2015, the business of HP Inc. Russia was part of HP Russia. An article about this organization describes events in the life of the company at that time.

Notes