VELUX Group recently announced that it has decided to permanently close its operations in Russia and Belarus. The decision follows the company’s suspension of all activities in Russia and Belarus last month in connection with the invasion of Ukraine.
VELUX Group says it will exit these two markets as soon as possible. All obligations to creditors and customers will be settled during the coming month, and employees will be dismissed. The Group will thereafter file for voluntary liquidation in Russia and Belarus so that its operations there can legally be de-listed. VELUX Group employs 72 people combined in sales offices in Russia and Belarus but has neither production facilities nor properties in these countries.
“For some time, we have been considering our position in Russia and Belarus. With the invasion of Ukraine, we suspended all our activities in Russia and Belarus, as we neither could nor would continue our activities in these two countries, given the seriousness of the situation. We have now made a decision to quickly and legally close our activities permanently. Our current status with ‘suspended activities’ does not afford any legal protection and can potentially place our employees at risk. Since we suspended our operations, the situation has substantially deteriorated. In conjunction with heightened counter-sanctions and a changing legal landscape in Russia, it is becoming increasingly difficult to keep our operations idle while waiting for clarity. We deeply regret the consequences this decision will have on our skilled employees and will ensure that they all receive fair severance as thanks for their dedicated efforts during many years,” says David Briggs, CEO of VELUX Group.
VELUX Group adds that its position in Ukraine remains, for the most part, unchanged. “VELUX Group’s operations continue to be on hold, and we continue to pay salaries to our employees, who have all been sent home. However, in support of our employees and based on the Ukrainian government’s request, we have allowed limited deliveries of our products in safe areas of the country and will continue to pay our taxes and salaries until further notice.”