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.
Danfoss Media Relations
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February 16: Danfoss technologies to rebuild Ukrainian cities
December 22: Standing strong with our Ukrainian colleagues
November 22: Danfoss Ukraine is preparing for winter
October 15: 1,500 EUR to all our Ukrainian colleagues
July 15: Danfoss announces local management buyout of its Russian businesses
June 30: Central Asia unit becomes part of Danfoss Turkey, Middle East and Africa Region
May 25: Danish Business Authority closes investigation into Danfoss with no further actions
April 1: Danfoss prepares to exit Russia and Belarus
March 4: Danfoss Update on the war in Ukraine
March 1: Statement from President & CEO Kim Fausing: Safety first
February 24: Update on the war in Ukraine