War in Ukraine: Scottish firms still operating in Russia

KCA Deutag says it has set up a committee to monitor the situation in Russia

Two Aberdeen-based oil and gas services firm have confirmed they are still operating in Russia, following the invasion of Ukraine.

KCA Deutag said it had "suspended all new investments" in Russia and had set up a dedicated committee to "actively monitor the situation".

Wood has also yet to pull out of the country.

It announced two weeks ago it would not bid for new work in Russia, and is now "working towards an exit".

Last year, KCA Deutag won a five-year offshore drilling contract with a major oil company in Russia.

KCA Deutag did not give its exact value but reported at the time that the contract, along with two extensions to drilling deals in the UK and Norway, were worth a combined $550m (£418m).

At the beginning of March, a week after the invasion started, Scottish ministers urged businesses to stop all trading with Russia.

• More Scottish firms halt sales to Russia

• Scottish firms urged to end all links with Russia

• Growing numbers of firms pull back from Russia

In a statement on Monday, KCA Deutag chief executive Joseph Elkhoury said his company was "shocked and saddened" by the deteriorating situation in Ukraine.

He said: "Since the start of the conflict, KCA Deutag established a dedicated committee to actively monitor the situation and stay in full compliance with all applicable sanctions.

"The group suspended all new investments in Russia and is evaluating its options relating to the Russian business.

"We remain focused on the health, safety and security of our colleagues and their families in Ukraine and Russia."

In an update, Wood said it was continuing to review its position in Russia, which accounts for 1% of its overall revenue, and was "working towards an exit from the country".

It currently has about 200 staff on the ground there, most of whom are working on a single technical services contract.

The company said it had already relocated foreign nationals out of Russia.

'Continuing to monitor'

In an earlier statement, Wood said the safety and wellbeing of its staff was its top priority.

It said: "We don't have any business in Ukraine, however we are undertaking work in Russia and have a small team on the ground.

"We are continually reviewing the best course of action to ensure they are safe and have established an emergency management team who are actively leading Wood's response."

It added: "Our trade compliance team continues to monitor the international sanctions, rules and regulations that have been introduced across the globe and provide ongoing guidance to the business.

"We have also made the decision not to bid for any new work in Russia and are reviewing our longer-term position in the country, in line with many of our clients."

Other big companies to have stopped short so far of exiting Russia include two global oilfield service providers.

Baker Hughes and Schlumberger said separately in recent days that they were suspending new investments there but would continue with existing work.

A number of Scottish food and drink manufacturers have already announced that they have either paused or permanently halted sales to Russia.

Whisky makers such as Edrington, Diageo and Chivas Brothers have suspended Russian sales, while others that have severed ties include Walker's Shortbread, Caramel Log maker Tunnock's and Irn-Bru producer AG Barr.

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