STOCKHOLM /Reuters -AB Volvo believes that the uncertainty caused by Russia-Ukraine War will affect its first quarter operating earnings. It has set aside provision of 4 billion Crowns (423.2 million dollars) for this purpose, according to the Swedish truckmaker.

Russia’s incursion into Ukraine for six weeks has seen over 4,000,000 people flee to other countries, killed and injured thousands and turned many cities into rubble. It also led to severe sanctions against its leaders.

According to a statement, the Volvo Group’s total assets include approximately 9 billion Russia-related crowns. About 6 billion of these crowns are cash items that may be realized in the future.”

The report stated that approximately 4Billion crowns of assets will be provided for during the first quarter 2022. These funds have a significant impact on operating income, particularly in the Financial Services section.

Volvo suspended Russian sales and service in February. Russia accounted for 3% of Volvo’s net sales last year of 372.2 billion Crowns.

Kaluga near Moscow is the production location of the company. The site can make 15,000 vehicles per annum and employs more than 600 people.

The company’s shares have seen a 25% drop in value over the past year due to shortages of parts and cargo capacity. This led production interruptions that resulted in higher costs and decreased profits.

($1 = 9.4512 Swedish crowns