Following reports in Germany yesterday of Linde’s suspension of new business in Russia, the company has confirmed it is ‘safely winding down’ affected projects in Russia and has suspended all business development for new projects in the country.
German publication Handelsblatt reported yesterday (Wednesday 16th) that business affected by sanctions had already been stopped at Linde or will be shut down in the near future.
Linde does, however, intend to fulfil existing contracts if permitted under sanctions, gasworld understands. This would include existing contracts with Gazprom, for example, a major customer of Linde which only placed two major orders with the company last autumn worth a reported $6bn.
The company was awarded the contract for a gas processing plant and an LNG plant in a large industrial complex near Ust-Luga, as affirmed in its Q3 2021 financial presentation to analysts at the end of the year.
Linde has now confirmed in an official statement, sent to gasworld, that it “continues to closely monitor the situation in Ukraine and has taken steps to ensure the safety of its employees and the continuous delivery of critical medical oxygen.”
“Linde is working with the relevant governments and authorities to ensure the company fully complies with international sanctions and is safely winding down affected projects in Russia. In addition, Linde has suspended all business development for new projects in Russia.”
“The invasion of Ukraine has led to a humanitarian crisis and Linde is supporting an international crisis relief charity to help ensure access to urgently needed medicine, supplies and aid for families at risk. Our thoughts and prayers are with all those whose lives are threatened or disrupted by this conflict,” the statement concluded.
According to gasworld Business Intelligence’s most recent country dashboard on the Russian market, Linde plc is the largest industrial gas company in the country with a market share of around 39%. The industrial gas market in Russia generated revenues of approximately $1.1bn in 2020.