Caterpillar, Deere Join Firms Suspending Business in Russia
Deere Suspends Shipments of Farm Equipment to Russia and Belarus
(Bloomberg) -- Two of the world’s largest manufacturers of machinery equipment needed for everything from farms to construction sites said they suspended business in Russia following the nation’s invasion of Ukraine, further isolating the country from the global economy.
Deere & Co. said it halted shipments of machines to Russia two weeks ago as the nation invaded Ukraine, and subsequently stopped deliveries to Belarus. Caterpillar Inc. said it suspended operations at its plants in Russia as doing business in the country has become increasingly challenging due to factors including supply chain disruptions and sanctions.
Deere is the world’s largest producer of farm equipment ranging from tractors to planters to combines. Caterpillar producers equipment critical to the construction, mining and oil and gas industries across the globe.
An increasing number of American companies are suspending operations in Russia following its invasion of Ukraine. Coca-Cola Co. on Tuesday joined a flood of U.S. and European organizations. Papa John’s International Inc. suspended all operations there and said it was reviewing whether it needs to take an impairment charge related to about $15 million in loans it made to a master franchisee there.
“John Deere is deeply saddened by the significant escalation of events in Ukraine,” Jennifer Hartmann, a Deere spokeswoman, said in an emailed statement. “Two weeks ago, we suspended shipments of machines to Russia and then subsequently, Belarus. We continue to monitor the situation closely while we fully abide by U.S. and international sanctions.”
Deere said Ukraine and Russia account for about 3% of its annual sales. Deere manufactures seeding and tillage equipment in Orenburg, Russia, and has a parts depot in Domodedovo, Russia. There’s also a marketing office in Kyiv, Ukraine, for its agriculture and turf business. Caterpillar has a plant in Tonso, Russia that makes mining trucks and excavators, as well as components shipped to European factories. It also has in Moscow a replacement parts distribution center.
Worthington Industries Inc., a value-added steel producer based in Columbus, Ohio, said it’s suspending all business activity directly with Russia. The company said steel it receives from its Russian-backed steel supplier NLMK USA is from the U.S. operations.
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