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Pirelli puts brake on Russian activities -Breaking


© Reuters. Pirelli Logo seen in Munich Auto Show 2021, IAA Mobility 2021, Munich, Germany. September 8, 2021. REUTERS/Wolfgang Rattay

ROME, (Reuters) – Pirelli, an Italian company, said Thursday that it would not invest in Russia except for those related to security and that activity in Russia’s factories would be restricted.

“Pirelli opposed this war…” In a statement along with its financial results, Pirelli stated that investments on the local market have been stopped, except for those related to security.

The report stated that the “activities in Russia’s factories will gradually be limited to the necessary to finance salaries and other social services for workers.”

The company said that earlier in this month it had not planned to close down its factories because of Russia’s invasion.

Two Russian plants produce around 10% of Pirelli’s global tyres production. But, Russia is only responsible for 33% of all revenues of Pirelli and just 4% for its adjusted operating profit.

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It established a committee that will monitor the unfolding Russia-Ukraine crisis.

Pirelli said it would notify the market if it changes its financial projections from those it presented in February, when it gave full year guidance before the invasion began.

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