Raute’s profitability has been negatively impacted from scaling down the deliveries to Russia during H1 2022

Raute’s net sales volume in Russia in 1H 2022 almost halved to €16.1 million (1H 2021 — €31.6 million). The share of the Russian market in total net sales for the reporting period decreased from 53% to 23%.

Originally order book for 2022 included a significant amount from projects in Russia. Since the end of February the Russian business has been gradually scaling down, in accordance with sanctions and local laws and regulations in both countries. The direct negative impact from the Russian projects is estimated to amount to approximately €9 million. Raute’s operating loss in 1H 2022 amounted to €16.6 million.

On March 4, 2022, Raute announced that we do not enter into new contracts with Russian parties. Set sanctions prohibit several deliveries to Russia. With customers or deliveries that are not under sanctions, Raute has started a controlled wind-down of existing agreements through completing or changing the scope of deliveries or ending the contract.

Raute’s assets in rubles in Russia were equal to approximately one million euros on June 30, 2022 and the assets were mainly related to the local maintenance business in Russia.