After carefully considering the global impacts and consequences of the ongoing crisis and humanitarian tragedy across Eastern Europe, including supply chain disruptions and mounting regulations, we determined that Otis’ ownership of our business in Russia is no longer sustainable. Regulatory approvals were received, and the sale of the Otis Russia business to Ice Development closed.
This follows our March decision to stop taking new equipment orders and stop investing in our operations in Russia. The sale of the business will provide a more certain future for local colleagues, customers and Otis shareholders.?
Ice Development is a Russian-based investment company with a focus on the real estate sector and overseeing large-scale residential construction including building restoration projects.
Upon transfer of ownership, Ice Development expects to resume full production at the Otis St. Petersburg manufacturing site, under a new brand name.??
We remain hopeful for a return to peace and stability in the region. We will continue to contribute to the ongoing relief and humanitarian efforts in Ukraine.
The Russia business is excluded from Otis’ 2022 outlook, as outlined during our first quarter 2022 earnings call.?