Investigation shows that Danfoss did not violate any external or internal rules and procedures following sanctions against Russia over the annexation of Crimea and Sevastopol.
On May 24, 2022, the Danish Business Authority approached Danfoss and asked for clarification as whether Danfoss and/or its subsidiaries had supplied products to the Russian military for military use following Russia’s illegal annexation of Crimea and Sevastopol.
The Danish Business Authority has since conducted a thorough investigation of all products exported to Russia by Danfoss and/or its former Russian subsidiaries with technical assessments carried out by the Danish Ministry of Defense’s Material and Procurement Agency.
The Danish Business Authority finds no reason to take any further action in the matter.
The Danish Business Authority encourages Danfoss to continue to pay extra attention to its ICP guidelines, internal control measures required for monitoring compliance with export control legislation, in connection with exports to sensitive export destinations.
Following the war in Ukraine and related sanctions, Danfoss decided to exit from Russia and Belarus on April 1, 2022. On July 15, 2022, Danfoss signed the agreement to sell its Russian businesses to the local management in Russia, currently pending local Russian approval. Following this, Danfoss no longer sells products in Russia. Danfoss reassessed its ability to controls its Russian subsidiaries and determined that as of end of August 2022, it can no longer exercise control over these entities or repatriate funds. Thus, Danfoss deconsolidated its Russian activities as of August 31, 2022. Danfoss had 1,066 employees in the Russian business that contributed around 2% share of Group sales. Danfoss impaired net assets of EUR 85m.
More information:
Danfoss Media Relations
Tel: +45 70 20 44 88
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