INTERNATIONAL: The suspension of deliveries to and future investments in Russia was announced by Alstom on March 9. The company said it would ‘obviously comply with all applicable sanctions and laws’ imposed following the Russian invasion of Ukraine.
Alstom has a 20% stake in Transmashholding, the dominant supplier in the Russian rolling stock market, with which it formed a strategic partnership in 2009. However, the company insisted there is ‘no material business nor operational link’ between Alstom and TMH.
The carrying value of Alstom’s interest in TMH was €482m as of June 30 2021, with a negative contribution to Alstom’s net income of -€2m in the first six months of 2021. The book value will be re-assessed as part of the closing accounts for the 2021-22 financial year.
Alstom also produces electric locomotives in Kazakhstan through the EKZ joint venture which is owned 75% by Alstom and 25% by TMH.
Discussions for a major contract for Alstom to supply 130 electric locomotives to Ukrainian national railway Ukrzaliznytsia have been suspended given the situation. The proposed contract was not in the order book nor included in Alstom’s 2021-22 outlook. Alstom expressed ‘deep solidarity with UZ during this dramatic time’.
Alstom has set up a dedicated team to manage the situation and support the safety of employees and their families. In addition to local initiatives, its support for the affected population will be channelled through the Alstom Foundation.
