Reuters — Diesel engine maker Cummins Inc. expects “some impact” to its business in Russia and is analyzing and preparing for current and anticipated sanctions, the U.S. truck engine maker said in an e-mailed statement on Monday.
Many firms have idled operations in Russia after it invaded Ukraine last week, resulting in powerful Western sanctions.
Cummins has an office in Moscow. In 2006, Cummins entered an agreement with Russian truck maker Kamaz Inc. to produce engines for the company’s fleet of trucks, buses and other heavy machinery.
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Cummins did not respond to a request for comment on its relationship with Kamaz, which is 47 per cent owned by Russian state conglomerate Rostec and supplies parts to Russian military vehicles.
Shares of Cummins were down 0.6 per cent in late afternoon trading, in line with Wall Street’s main indexes as investors digested the sanctions against Russia.
Russia’s invasion of Ukraine was the biggest attack on a European state since the Second World War. Russia calls its actions in Ukraine a “special operation.”
Other U.S. manufacturers including Deere and Co. and Caterpillar have distribution and manufacturing facilities in Russia. Deere, the world’s largest farm equipment maker, opened a manufacturing and parts distribution plant near Moscow in 2010. It was the company’s largest single investment in more than 100 years of doing business in Russia.
Deere didn’t specify how its business will be impacted, but said in an emailed statement it will “fully abide by U.S. and international sanctions.”
Caterpillar did not respond to a request for comment.
— Reporting for Reuters by Bianca Flowers.
