Systems (formerly Siemens Russia)

Siemens implements Russia in large projects in, to power railway transport and healthcare. In the IT market, the concern is represented by the activities of some subsidiaries, including a Siemens PLM Software major global provider of software solutions for product lifecycle management () PLM and manufacturing.

Performance indicators

2022

Siemens lost €600 million on the sale of Russian business

Siemens estimated its losses from the sale of assets in the Russian Federation and the termination of operations in the Russian market at 600 million euros. The German concern announced this in its statements for fiscal 2022.

It follows from the document that the losses of the corporation were caused by the Mobility division, which unites Siemens enterprises in the field of railway transportation. In Russia, the company, in cooperation with Russian Railways, created a depot network for servicing and repairing Sapsan and Lastochka trains, and its subsidiaries produced frequency converters and traction electric motors. Siemens Mobility manufactures railway equipment, trams, locomotives, automation systems for railways and urban rail transport, systems for sorting letters and correspondence, equipment for airports.

Siemens estimated its losses from the sale of assets in the Russian Federation and the termination of operations in the Russian market at 600 million euros

In December 2023, eight German companies asked the German authorities to compensate them for financial damage incurred due to investments in Russia. Including compensation was requested by Siemens Mobility and Volkswagen Bank. The instrument of investment guarantees from the German federal government allows companies that have left Russia to reimburse investments in Russian projects. Siemens Mobility noted that Siemens secured investments in Russia by resorting to this mechanism, "like many other German companies."

In February 2023, Russian Railways filed an application to recover a penalty from a German company, which was estimated at 29.5 million rubles daily (a little more than 6 million rubles for non-fulfillment of the contract and another 23 million rubles - a loss due to the lack of Sapsanov supplies to the railway network).

Seimens Report for fiscal 2023

1% of Siemens sales are in Russia

According to May 2022, Russia accounts for about 1% of all Siemens sales.

2019: Revenue growth by 9% to RUB 39.5 billion

At the end of 2019, Siemens LLC took 7th place in TAdviser Ranking: the 50 most profitable representative offices of foreign IT companies in Russia. The company's revenue for 2019 amounted to 39,499,774 thousand rubles, which is 9% higher than in 2018.

2018: Revenue - 36.18 billion rubles

According to the results of 2018, the revenue of Siemens LLC amounted to 36,186,630 thousand rubles.

History

2024: Name change to "Systems"

Siemens changed the name of the Russian "daughter" to "Systems." The corresponding entry in the Unified State Register of Legal Entities (USRUL) appeared in February 2024.

According to TASS, citing registry data, by February 9, 2024, the German concern Siemens AG was indicated as the owner of 100% of Systems LLC. At the same time, Siemens LLC has been in the process of reorganization in the form of an allocation since the end of 2021. The general director is Stepan Zaytsev.

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Siemens

The German concern AG Siemens has been operating in Russia since 1852. He also supplied medical equipment, products for the railway industry, products and technologies for power, industrial automation systems, as well as consumer goods. Russia accounted for about 1% of all sales of the conglomerate.

In February 2024, it became known that Neftegaz and Power LLC (formerly Siemens power, the Russian structure of Siemens Energy) intends to initiate its own bankruptcy in the Arbitration Court of St. Petersburg and the Leningrad Region.

The company calls the reasons for this decision the impossibility of continuing continuous economic activity in the long term, the refusal of individual creditors to settle the dispute, the actual suspension of economic activity, insufficient profitability and profitability, as well as the formal fulfillment of the requirements of bankruptcy legislation.

In the event of the resumption of the supply of components, payment by debtors of debt, the removal by the courts of interim measures imposed on certain cases that actually block economic activities, the consent of creditors to the peaceful settlement of disputes with the company, this notice can be canceled, the bankruptcy application is withdrawn, and the economic activities of the company can be resumed, - the message says.[1]

2023: Siemens' refusal to terminate contract with Rosatom

At the end of October 2023, the German conglomerate Siemens AG announced that the termination of the contract with Rosatom would cost the company a significant amount. Therefore, Siemens is ready to maintain relations with the Russian side, despite the current geopolitical situation. Read more here.

2022

Sale of all Russian business

Siemens sold its entire business in Russia, which the German industrial concern announced on November 17, 2022 as part of the publication of its financial statements.

According to the company, it sold its entire financial and leasing business in Russia at the end of the fourth quarter of fiscal 2022 (lasts from July to September 2022 calendar).

Siemens sold its entire business in Russia

Siemens launched the procedure for leaving the Russian Federation in May 2022 after the start of the Russian special military operation in Ukraine. The company announced its withdrawal from Ural Locomotives (a joint venture with Sinara), and the Siemens Mobility division also ceases operations in Russia.

In August 2022, Siemens Energy, which became an independent company as a result of the corporate reorganization (spin-off) of Siemens in 2020, also announced plans to leave the Russian market. The company predicted a loss of about 400 million euros in revenue from operations related to Russia at the end of the financial year. Withdrawal from Russian assets will continue until the end of 2022.

Russian Railways on March 22, 2022 reported that Siemens had notified them of the suspension of the contract for the purchase of Sapsanov. Speaker of the Federation Council Valentina Matvienko after that said that the company could be replaced by other organizations. She suggested that the German company made the decision under pressure from outside.

Siemens worked in Russia since 1852 - then the company was engaged in laying telegraph lines. Russia accounted for about 1% of all conglomerate sales. By the beginning of 2022, the corporation supplied medical equipment, products for the railway industry, products and technologies for power, industrial automation systems, as well as consumer goods - household appliances, electrical installation devices and others to the Russian Federation.^[2]

Statement on the curtailment of business in Russia, but some assets continue to work

The Siemens plant in Voronezh will continue to operate as usual, contrary to the statement of the German conglomerate about the complete curtailment of business in Russia amid the conflict in Ukraine. In addition, it was reported that Siemens Healthineers Russia will also continue to operate.

Siemens' intention to leave Russia became known on May 12, 2022. The company said in a statement that it had already begun "procedures to stop its production activities and all business activity." The company will announce the financial implications of this decision later.

Siemens was one of the first companies to suspend all new operations and international deliveries to Russia while assessing the situation to ensure the safety of 3,000 of its employees in the country. As of May 2022, Siemens circuit includes, in particular, automation and digitalization operations for industry, intelligent infrastructure, transport, distributed power systems.

Siemens worked in Russia since 1852 - then the company was engaged in laying telegraph lines.^[3]

Siemens is ready to transfer technologies to Russia, but subject to a guaranteed order

Siemens is ready to localize technologies and production in Russia in case of guaranteed demand. President of Siemens in Russia Alexander Liberov spoke about this at the opening ceremony in Moscow.

Siemens President in Russia Alexander Liberov opened a digital competence center in Moscow

As an example of technology transfer, he mentioned projects with Russian Railways - the production of Sapsan and Lastochka high-speed trains, when the company received a guaranteed order for the supply of 1200 high-speed train cars. Developing cooperation with the RJ, Siemens in 2021 signed an agreement on the creation of a joint venture on the basis of the Engineering Center for Railway Transport to develop in Russia a fundamentally new high-speed train capable of transporting passengers and cargo at speeds up to 400 km/h. As part of this project, production facilities will be expanded at the Ural Locomotives enterprise in Verkhnyaya Pyshma.

Siemens is deeply integrated into the Russian economy. Unlike many other global companies, we not only sell our products in Russia, here we have a full cycle: development, implementation, and service. In many projects, Siemens acts as a domestic company: either a Russian legal entity, or within the framework of joint ventures created with the Russian side, - said Alexander Liberov, answering a question from TAdviser.

Siemens is deeply integrated into the Russian economy, - President of Siemens in Russia Alexander Liberov

In the center of digital competencies, Siemens intends to promote digital twins, industrial internet of things (), IIoT smart building management systems (), Smart Grid systems based on, as well AI as digital solutions for. In total, health care about 40 solutions are presented in the center. In some areas, the company is already cooperating with Russian customers. According to Alexander Liberov, the technology digital twins allowed the Russian corporation UAC to accelerate production processes by 40%.

The Moscow Center of Competence was the first for Siemens in Eastern Europe and Central Asia.

Opening of the Center for Digital Competencies in Moscow

Siemens has opened the Center for Digital Competencies in Moscow - thanks to augmented reality technologies, it provides an opportunity to visualize the technologies used in the Russian industry, as well as see the company's advanced developments in the field of digital production, industrial innovation, intellectual infrastructure and healthcare. The center was created during the year, the total investment amounted to 200,000 euros. It features about 40 unique solutions and applications, including industrial VR, RTLS and artificial intelligence technologies. The company announced this on February 9, 2022.

The opening ceremony was attended by the President of Siemens in Russia Alexander Liberov.

The emergence of the Center for Digital Competencies in Moscow has expanded the global ecosystem, which now includes 42 such centers. The total number of visitors to centers around the world is about 90,000 people a year.

One of the goals of creating a center in Moscow is to demonstrate the capabilities of Siemens in all business areas. For current and potential customers of the company, solutions for energy networks, "green "power, digital twin technologies, integrated systems for servicing buildings and enterprises, software development environments, solutions for managing medical equipment, etc. are presented here. Here you can see examples of successful implementations in Russia and abroad, as well as learn about the advantages gained through these projects.

In addition, the center will become a platform for effective personnel training: engineers of both the company itself and its partners will get acquainted with solutions that were previously presented only in Germany. Finally, the Moscow center focuses on developments that are already successfully used in the Russian industry.

2019

Digital Labelling Partnership Agreement with CRPT

On September 25, 2019, the Center for the Development of Advanced Technologies (CRPT) announced the signing of a strategic partnership agreement with Siemens in Russia. The document was signed by the general director of the CRPT Andrei Kirillov and the director of the Digital Production department of Siemens in Russia Zhanna Shalygina. Read more here.

Agreement with SPbMPP on training and advanced training of specialists

On March 22, 2019, it became known that Siemens in Russia and St. Petersburg State University of Economics (SPbSEU) signed a Cooperation Agreement. The document was signed by the rector of St. Petersburg State University Igor Maksimtsev and the President of Siemens in Russia Alexander Liberov. Read more here.

2017: Sales slump to €1.1bn

Turnover in fiscal 2017 (as of September 30) amounted to 1.1 billion euros. Siemens LLC has about 2,900 employees. The concern works in all traditional areas of its activity, is present in more than 40 cities and is one of the leading suppliers of products, services and complex solutions for the modernization of key sectors of the economy and infrastructure.

2016: Sales slump to €1.2bn

The company's turnover in fiscal 2016 (ending September 30) amounted to 1.2 billion euros. Siemens LLC has about 2,900 employees.

2015: Siemens revenue in Russia halves

On April 12, 2015, Bild am Sonntag published excerpts from an interview with Siemens Chairman Joe Kaeser. He reported a significant drop in the company's revenue on the Russian market in connection with the Western sanctions policy. At the same time, the head of the concern noted that he supports the restrictions imposed by the authorities of Europe and the United States on Russia.^[4]

"One thing is obvious that business in Russia as a whole has suffered a lot, and ours has decreased by about half," said Joe Kaeser without specifying financial indicators.

According to the Frankfurter Allgemaine Zeitung newspaper, Siemens' annual turnover in the Russian market is estimated at $2 billion.^[5]

Siemens Chairman Joe Kaeser said that despite the drop in sales in Russia, the company supports the Western sanctions policy

Joe Kaeser added that Siemens intends to adhere to the sanctions of the European Union and the United States against Russia, but at the same time the company considers it necessary to conduct a dialogue between the countries.

primacy of politics over economics. We still adhere to it , and I have always been clear about this, as well as that it is better to talk to each other than about each other, "said the chairman of the board of Siemens

In an interview with RIA Novosti in February 2015, Siemens Russia President Dietrich Meller said that due to the political situation in the country, sanctions and falling oil prices, the company "expects development without rises." According to Meller, it will take several years to restore the Russian market, but the company intends to maintain investment in it^[6]

2014: 3,300 employees

In 2014, Siemens had more than 3,300 employees in Russia and Central Asia.

2009: Revenues over €1.4 billion

The volume of Siemens orders in Russia, Belarus and Central Asia in the fiscal year 2009 (as of September 30) exceeded 1.2 billion euros, and the turnover amounted to over 1.4 billion euros.