KONE Completes Sale of Russian Division, Leaves Country

Finnish elevator maker KONE has completed the sale of its Russian operations to S8 Capital, a Russian holding company that has acquired assets from several departing Western firms, Reuters reports. “The transaction has been approved by the relevant authorities and the closing of the deal means that KONE is now fully divested from Russia,” KONE said in a statement. The value of the transaction was not disclosed. S8 Capital said the deal included the company’s service portfolio covering 7,000 equipment units in six Russian regions and that the more than 300 KONE employees in Russia will move to Meteor Lift, the company S8 Capital has rebranded Otis’ former Russian business as. In March 2022, KONE said it would cease deliveries and not sign new orders; three months later, it announced plans to divest its business and operations. Companies have been exiting Russia since Moscow invaded Ukraine on February 24, 2022, but Russia has steadily tightened exit requirements, demanding government approval, a 50% discount on any sale and a contribution to the federal budget of at least 10% of the sale price, dubbed an “exit tax” by Washington, the source reports. S8 Capital Managing Director Thorsten Schubert said the KONE deal has made Meteor Lift Russia’s leading high-speed lift provider, and the priority now is to establish supply chains with countries that have not imposed sanctions against Russia.