Aggreko to exit Russia

Power rental giant Aggreko is to sell its Eurasian business, which is mainly in Russia.

Aggreko said on Tuesday it will operate the business independently from the rest of Aggreko until the sale is concluded. Revenues from the region were £64 million in 2020, representing around 5% of Aggreko’s total.

“Aggreko has a responsibility for its 500 exceptional employees in the region and will continue to support them until a transaction is complete”, said the company.

It said there would be no investment in the Eurasian business before the sale and it would be ring-fenced for financial purposes.

The company’s decision to exit Russia is the first major response from the rental sector since the invation of Ukraine. For more updates on the conflict and the impact on construction, see here.

Aggreko has been active in Russia for many years. In 2017 CEO Chris Weston was among business leaders who met President Putin at the St Petersburg Economic Forum, where Aggreko signed a memorandum of understanding with Russia’s Far East Investment and Export Agency.