Finland’s biggest construction company YIT has halted investment in Russia over its invasion of Ukraine.
It builds mostly housing in Russia and said Thursday (3 March) that it would stop investing in plots of land or starting new apartment projects until it completes an accelerated strategic review of its operations there.
YIT has also stopped buying construction materials, mainly timber, from Russia.
Revenue from YIT’s Housing Russia business was €204m in 2021, which was 7% of YIT Group’s revenue in 2021. Adjusted operating profit in the year was €26m. Housing Russia employs around 1,500 people, the company’s statement said.
“The Russian military attack has led to great human distress and suffering in Ukraine and our sympathy is with the Ukrainian people,” said Markku Moilanen, President and CEO of YIT.
“We are deeply shocked by these recent events. Due to the dramatic changes in geopolitical situation, our business is facing unprecedented challenges in Russia, and our highest priority now is to ensure the health and safety of our employees. In addition, we have sped up the strategic review of the Russian operations we initiated last November and expect to come to a conclusion on an accelerated schedule. At this point, we have active discussions ongoing with several parties.”
YIT added that the Ukrainian crisis has hurt the availability of workers in Central Eastern European, the Baltic countries and Finland.