Cummins says expects ‘some impact’ in Russia; Deere says to abide by sanctions -Breaking
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© Reuters. The Deere & Co farm equipment plant in Ankeny, Iowa, U.S. October 20, 2021. REUTERS/Scott MorganBy Bianca Flowers
(Reuters) – Cummins Inc (NYSE:). The U.S. truck manufacturer stated in an email statement that it expects to have “some effect” on Russia’s business and was analyzing and prepping for the current and expected sanctions.
Numerous companies in Russia have suspended operations since Russia invaded Ukraine last Wednesday, prompting strong Western sanctions.
Cummins also has a Moscow office. Cummins partnered with Kamaz Inc., a Russian truck manufacturer, to manufacture engines for its fleet of trucks and buses.
Cummins didn’t respond to our request to comment about its relationship to Kamaz. Kamaz is owned 47% by Rostec, a Russian state conglomerate. It supplies parts for Russian military vehicles.
Cummins stock fell 0.6% during late afternoon trading. This was in keeping with Wall Street’s major indexes, as Wall Street’s investors considered the impact of sanctions on Russia.
The Russian invasion of Ukraine was the most serious attack against a European country since World War Two. Russia refers to its actions against Ukraine as “special operations.”
Other U.S. manufacturers including Deere (NYSE:) & Co and Caterpillar Russia is home to both manufacturing and distribution facilities of (NYSE:). Deere is the largest manufacturer of farm equipment in the world. In 2010, it opened a parts and manufacturing plant close to Moscow. This was Deere’s biggest single investment over more than 100 years in Russia.
Deere declined to give details about how the business would be affected, but it stated via email that “fully adhere” to U.S. as well as international sanctions.
Caterpillar has not responded to my request for comments.
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