The fastest way or hiding? Why international companies sell business in Russian Federation to local managers

Adam Edzhak, Regional President of the Danfoss of Eastern Europe (photo: Danfoss) that is hidden in the sale of Russian and Belarusian assets of local management? Danfss Danish company response. Many international companies sell their business in Russia and Belarus local management - Management Buyouut (MBO). In this way, they declare the exit from these markets. But there is a risk that they thus hide their presence in the Russian Federation and RB.

Among the companies that have chosen a similar option - Danfoss from Denmark. “Why did we choose MBO - Management Buyouut - not other options? There are two explanations for this. First, we chose the fastest solution. Secondly, we were very focused on leaving these markets and making it controlled, ”Business Adam Edzhak, a regional President of the Danfoss of Eastern Europe, said in an interview with NV.

On March 1, the company decided to leave the markets of Russia and Belarus in connection with Russia's aggression against Ukraine. “Danfoss cannot be present in North Korea. This is almost the same, ”Yenzhak said. After the sale of production assets, new owners will be able to use lines for the production of similar equipment, but without the technology of the Danish company, most likely from the components produced in Russia.