Volvo will allocate 423 million US dollars to deal with the situation in Russia and Ukraine

According to the latest report, Swedish truck maker AB Volvo said on Friday that it expects its first-quarter operating profit to be affected by uncertainty caused by the situation in Russia and Ukraine, and will set aside a value of 4 billion crowns ($423.2 million) in assets.

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Reuters reported that the Volvo Group said in a statement, “Volvo Group’s total assets related to Russia are about 9 billion crowns, of which about 6 billion crowns are cash items that can be realized in the next few years.

In the first quarter of 2022, the group Assets of around 4 billion kroner will be set aside, which could negatively impact its revenue, especially in the financial services sector.”

In February, Volvo Trucks suspended all sales, service, and production in Russia. Last year, the Volvo Group had net sales of around 372 million kronor, of which sales in Russia accounted for around 3 percent. The Volvo Group’s production site in Russia is located in Kaluga, near Moscow, with an annual output of 15,000 cars.

Moreover, the Volvo Group’s shares have lost a quarter of their value since the start of the year, as a shortage of parts and logistics capacity has cut production and increased costs, denting the Volvo Group’s profits.

(via)