War in Ukraine: Engineering giant to pull out of Russia

Weir had announced a full suspension of its operations in Russia last month

Engineering giant Weir Group has confirmed it is winding down its business in Russia, following the invasion of Ukraine.

The move comes after the Glasgow-based group announced a full suspension of its operations in Russia last month.

It currently employs 267 sales and service staff there, the majority of whom work in its minerals division.

The company said it expected the loss of sales in Russia to hit operating profits by up to £20m this year.

At the beginning of March, the Scottish government urged businesses to stop all trading with Russia, following the start of the invasion on 24 February.

Weir was among a number of Scottish companies which later announced they were pausing activities in the country.

It continues to have about 30 employees based in Ukraine.

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In a trading update, Weir said that "given the evolution of the situation" it had taken the decision to wind down its Russian business during 2022.

It stated: "We strongly condemn the Russian military invasion of Ukraine. Our priority remains the welfare of our Ukraine-based colleagues and their families.

"We are deeply saddened by the humanitarian crisis that continues to unfold and have pledged financial support to organisations working to help the people of Ukraine.

"Our thoughts are with all those whose lives are being affected by these events and join with others in hoping for a swift and peaceful end to the hostilities."

Weir won an order for an iron ore processing plant in Ukraine last year

Weir's Russian business represents about 2% of the group's net assets.

In its trading update, the company stated: "While a review of the recoverability remains ongoing, this could result in an exceptional write-off during 2022."

A year ago, Weir won a £36m order to supply energy-saving technology for an iron ore processing plant in Ukraine.

It has already supplied some of the equipment, which includes high-pressure grinding rolls and screens. The rest is due to be delivered from 2023 onwards, depending on developments in Ukraine.

Weir switched its focus to mining and infrastructure after selling its oil and gas division to Caterpillar in a £314m deal in 2020.