Air Liquide Announces Its Plan to Disengage from Russia

Rhea-AI Summary

Air Liquide has announced its decision to withdraw from Russia amid evolving geopolitical circumstances. A Memorandum of Understanding has been signed with local management for a Management Buy Out (MBO), pending regulatory approvals. Air Liquide employs approximately 720 people in Russia, generating less than 1% of its turnover. The company had previously set aside 404 million euros related to its Russian operations, which will not impact cash flow. The Group aims for a responsible transition while ensuring oxygen supply continuity to hospitals.

Positive

• The divestment allows for a responsible and orderly transition of operations in Russia.
• The MBO aims to ensure continuity of oxygen supply to hospitals in Russia.

Negative

• The divestment may lead to potential operational disruptions during the transition period.
• The exceptional provision of 404 million euros indicates potential financial impact from exiting the Russian market.

PARIS--(BUSINESS WIRE)-- Regulatory News:

Air Liquide (Paris:AI) confirms today its intention to withdraw from Russia. Taking a responsible and orderly approach, the Group has signed a Memorandum of Understanding with the local management team with the objective to transfer its activities in Russia in the framework of an MBO (Management Buy Out). This project is notably subject to Russian regulatory approvals. In parallel, as a consequence of the evolution of the geopolitical context, the activities of the Group in Russia will no longer be consolidated starting September 1, 2022.

Air Liquide employs close to 720 people in Russia and its turnover in the country represents less than 1% of the Group’s turnover. This divestment project to local managers aims to allow an orderly, sustainable and responsible transfer of its activities in Russia, ensuring notably the continuity of oxygen supply to hospitals. As a reminder, the Group has previously announced, in the context of the closing of its accounts at June 30, 2022 an exceptional provision of 404 million euros on the Group’s assets in Russia, which has no impact on cash.

A world leader in gases, technologies and services for Industry and Health, Air Liquide is present in 75 countries with approximately 66,400 employees and serves more than 3.8 million customers and patients. Oxygen, nitrogen and hydrogen are essential small molecules for life, matter and energy. They embody Air Liquide’s scientific territory and have been at the core of the company’s activities since its creation in 1902.

Taking action today while preparing the future is at the heart of Air Liquide’s strategy. With ADVANCE, its strategic plan for 2025, Air Liquide is targeting a global performance, combining financial and extra-financial dimensions. Positioned on new markets, the Group benefits from major assets such as its business model combining resilience and strength, its ability to innovate and its technological expertise. The Group develops solutions contributing to climate and the energy transition—particularly with hydrogen—and takes action to progress in areas of healthcare, digital and high technologies.

Air Liquide’s revenue amounted to more than 23 billion euros in 2021. Air Liquide is listed on the Euronext Paris stock exchange (compartment A) and belongs to the CAC 40, CAC 40 ESG, EURO STOXX 50 and FTSE4Good indexes.

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Source: Air Liquide

FAQ

What is Air Liquide's plan for its operations in Russia as of September 2022?

Air Liquide plans to withdraw from Russia through a Memorandum of Understanding for a Management Buy Out.

How many employees does Air Liquide have in Russia?

Air Liquide employs approximately 720 people in Russia.

What percentage of Air Liquide's turnover comes from Russia?

Air Liquide's turnover in Russia represents less than 1% of the Group's total turnover.

What provision did Air Liquide make related to its Russian operations?

Air Liquide announced an exceptional provision of 404 million euros concerning its assets in Russia.

When will Air Liquide stop consolidating its Russian operations?

Air Liquide will no longer consolidate its Russian operations starting September 1, 2022.