Home Stock Russia transport industry negatively affected by Ukraine conflict

Russia transport industry negatively affected by Ukraine conflict


Deutsche Lufthansa AG (ETR: LHA), the German flag airline, said that it had canceled about thirty flights to Russia from its Australian Airlines, Eurowings, and Lufthansa carriers. The German-based airline also canceled a flight to Asia from Frankfurt to avoid having to pass over Russian airspace. 

Daimler Trucks (OTCMKTS:DDAIFalso said that it would immediately stop all its business operations in Russia, including its working relationship with Russian truck manufacturer Kamaz. The company will build no more trucks under this joint partnership. The company will not supply Kamaz with any more components as well.   

Management statements 

Daimler group said:

Our cooperation with Kamaz is purely civilian in nature and was only concluded with this focus. In this cooperation, it goes without saying that we have always strictly complied with all applicable export control and sanction regulations.

Daimler said that it was shocked about Russia’s military attacks on Ukraine and claimed it was carefully monitoring the whole situation. The company published on Twitter saying:

We will comply with all measures taken by the German government and the EU.

Blowback from other businesses 

Reports by the Handelsblatt newspaper claim that Mercedes-Benz is also looking for the fastest ways it can divest the 15% stake it has in Kamaz. A spokesperson from Mercedes-Benz told Reuters that the German car manufacturer would be re-evaluating business activities after what has happened in Ukraine. 

Daimler AG, now more commonly known as the Mercedes-Benz Group, was Daimler Truck’s parent company before the truck manufacturer was spun off. 

Germany is also preparing to disallow Russian planes from entering its airspace, and it’s the latest European nation to do this in response to the unsolicited Ukraine invasion. 

Lufthansa has been talking directly to international and national authorities about the invasion and will continue to monitor the situation as it unfolds. 

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