SKF statement on media reporting related to sales in Russia
SKF has responded to media reports about its sales to companies within the Russian nuclear weapons program. The company is conducting an internal investigation, supported by external experts, after discovering a distributor sold SEK 113,000 worth of standard SKF products to an armaments company without SKF's knowledge. SKF emphasizes that it has not had direct dealings with the reported Russian entities and that these sales do not breach any sanctions or export controls. Appropriate actions will be taken regarding the distributor's breach of contract.
- SKF is taking proactive steps to address the issue by conducting a thorough investigation with external support.
- The company has clarified that it did not directly sell to sanctioned entities, mitigating potential reputational risk.
- A distributor's breach of contract involved sales to an armaments company, which raises concerns about SKF's supply chain oversight.
- The incident may lead to reputational damage for SKF in light of its association with the defense sector.
GÖTEBORG, Sweden, April 1, 2022 /PRNewswire/ -- SKF would like to make the following statement in relation to recent media reporting related to sales to certain companies in the Russian nuclear weapons program.
SKF takes this information very seriously and carries out an investigation to thoroughly investigate the matter. The investigation is being made by SKF Internal Audit and supported by external experts.
SKF has received a file with links to websites where Russian state-owned companies publish public tenders. The information includes 171 tenders made by 17 Russian companies.
SKF has not had any of these 17 companies as customers.
SKF has reviewed each of these 171 tenders in detail and in the investigation found one distributor that has bought standard SKF products and then sold them to a company in the armaments industry. This sale was made without the knowledge of SKF. The sale was in breach of the contract between SKF and the distributor as well as with SKF's Code of Conduct for distributors. The total value of sold products from the distributor to the customer amounted to SEK 113,000 during 2019–2021, with no sales before or after that period. SKF takes this breach of contract very seriously and will take appropriate actions.
For clarity, the distributor's sale to said customer does not mean that SKF has violated any applicable sanctions or export control rules.
Aktiebolaget SKF
(publ)
For further information, please contact:
PRESS: Carl Bjernstam, Group Communication
tel: 46 31-337 2517; mobile: 46 722-201 893; e-mail: carl.bjernstam@skf.com
INVESTOR RELATIONS: Patrik Stenberg, Head of Investor Relations
tel: 46 31-337 2104; mobile: 46 705-472 104; patrik.stenberg@skf.com
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SOURCE SKF
FAQ
What is SKF's response to sales linked to Russian nuclear weapons companies?
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Did SKF violate any sanctions related to sales in Russia?
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