Cummins says expects ‘some impact’ in Russia; Deere Says Respect Sanctions

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The Deere & Co agricultural equipment factory in Ankeny, Iowa, U.S., October 20, 2021. REUTERS/Scott Morgan

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Feb 28 (Reuters) – Cummins Inc. (CMI.N) expects “some impact” on its business in Russia and is analyzing and preparing for current and expected sanctions, the U.S. truck engine maker said in a statement on Monday. a press release sent by e-mail.

Many companies slowed operations in Russia after last week’s invasion of Ukraine, prompting powerful Western sanctions.

Cummins has an office in Moscow. In 2006, Cummins entered into an agreement with Russian truck manufacturer Kamaz Inc. to produce engines for the company’s fleet of trucks, buses and other heavy machinery.

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Cummins did not respond to a request for comment on its relationship with Kamaz, which is 47% owned by Russian state conglomerate Rostec and supplies parts for Russian military vehicles.

Shares of Cummins were down 0.6% late in the afternoon, in line with major Wall Street indexes as investors digested Russia sanctions. Read more

Russia’s invasion of Ukraine was the biggest attack on a European state since World War II. Russia calls its actions in Ukraine a “special operation”.

Other US manufacturers, including Deere & Co (DE.N) and Caterpillar (CAT.N), have distribution and manufacturing facilities in Russia. Deere, the world’s largest agricultural equipment manufacturer, opened a parts manufacturing and distribution plant near Moscow in 2010. It was the company’s biggest investment in more than 100 years of business in Russia.

Deere did not specify how its business will be affected, but said in an emailed statement that it will “fully comply with U.S. and international sanctions.”

Caterpillar did not respond to a request for comment.

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Reporting by Bianca Flowers; Editing by Mark Porter and Andrea Ricci

Our standards: The Thomson Reuters Trust Principles.

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