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ABB

Swedish engineering giant ABB to quit Russia over Ukraine

Swedish-Swiss engineering giant ABB said on Thursday it will quit Russia as a result of the war in Ukraine and the related international sanctions against Moscow.

Swedish engineering giant ABB to quit Russia over Ukraine
A worker at Hitachi ABB Powergrids in Ludvika. Photo: Fredrik Sandberg / TT

Russia accounts for only one or two percent of ABB’s overall annual turnover and the decision to pull out will have an estimated financial impact in the second quarter of around $57 million, the group calculated.

“ABB has decided to exit the Russian market due to the ongoing war in Ukraine and impact of related international sanctions,” the group said in a statement.

Russia accounts for only one or two percent of ABB’s overall annual sales and the decision to pull out will have an estimated financial impact in the second quarter of around $57 million, the group calculated.

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A large number of major western companies have pulled out of Russia since Moscow invaded its pro-Western neighbour on February 24.

“When the war broke out, ABB stopped taking new orders in Russia,” the group said.

At the same time, it said it continued to fulfill “a small number of existing contractual obligations with local customers, in compliance with applicable sanctions.”

Most of ABB’s dedicated Russian workforce has been on leave since March “and the company will do its best to support them as it realigns its operations in a controlled manner,” it said.

ABB has about 750 people in Russia and two production sites in the country located in the Moscow region and Lipetsk, as well as several service centres.

Separately, the group said that its net profit fell by 50 percent to $379 million in the second quarter, largely as a result of one-off charges, but also the cost of withdrawing from Russia.

Sales, on the other hand, grew by six percent to $7.2 billion in the period from April to June, ABB said.

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CRIME

Swedish spy brothers go on trial in ‘unique’ Russia case

Two Swedish brothers, one a former intelligence official, went on trial in Stockholm on Friday accused of "aggravated espionage" for allegedly spying for Russia's GRU military intelligence service between 2011 and 2021.

Swedish spy brothers go on trial in 'unique' Russia case

“This case is unique in many ways… We haven’t had a trial like this in more than 20 years”, prosecutor Mats Ljungqvist told court in his opening statement.

He said the information obtained, transmitted and divulged was “extremely sensitive material”. His co-prosecutor Per Lindqvist said it could be “detrimental to Sweden’s national security”.

READ ALSO: Swedish brothers charged with spying for Russia

Defendants Payam and Peyman Kia risk life sentences if found guilty. Most of the trial will be held behind closed doors.

“The court will have insight into material that very few in this country have seen or have access to,” Ljungqvist said.

A court sketch of the trial showing Peyman Kia and his lawyer to the left, and Payam Kia and his lawyer in the middle. Photo: Anders Humlebo/TT

On Friday, prosecutors made brief introductory statements before the judge ordered reporters out of the courtroom.

Payam Kia is aged 35 and his brother 42, according to the charge sheet. They are of Iranian origin, according to Swedish media reports.

Peyman Kia, who appeared calm in court dressed in a dark suit and tie, has served in Sweden’s intelligence service Sapo and intelligence units in the Swedish army.

According to Sweden’s newspaper of reference, Dagens Nyheter, he at one point worked for the Office for Special Information Gathering (KSI), the most secret section of the military secret service.

He is accused of illegally acquiring information during his employment with Sapo and the armed forces.

Payam Kia is accused of “participating in the planning of the deed and handling contacts with Russia and the GRU, including the handover of information and receiving compensation”.

Bearded and dressed in the Swedish jail system’s green overalls, he hid his face as he entered the courtroom with his lawyer. Lawyers for the pair have been tight-lipped about the case. They told court on Friday that their clients denied the charges.

The prosecutors requested that much of the material in the case be classified even after the end of the trial, due to its sensitive nature.

The names of several witnesses, including those working for the Swedish military and security police and who have access to vast amounts of classified information, will also be kept secret.

The case is expected to continue until December 12.

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