Xerox Holdings announced on Wednesday the sale of its Russian operations to local management for an undisclosed sum, joining a growing roster of Western enterprises withdrawing from the country in response to its February 2022 incursion into Ukraine. This move comes amidst Washington’s imposition of “exit taxes,” mandating foreign companies exiting Russia to pay at least 10% of the sale price, compelling a 50% reduction in the final sale figure.
Xerox confirmed that it had curtailed its activities in Russia when the Ukrainian conflict began. A spokesperson stated, “These limited operations involved dealings solely with specific clients and partners, all conducted in strict adherence to relevant government-sanctioned measures.”
A spokesperson for Xerox emphasized the company’s previous operations in Russia were conducted in full compliance with government-issued sanctions, catering to specific clients and partners. Later in the day, Interfax news agency reported that the top executives of Xerox’s Russian division have assumed ownership, signaling an imminent rebranding and detachment from the global corporation. The Russian entity declined to provide a statement in response.
The exodus of foreign businesses from Russia has seen a sharp rise since Moscow’s initiation of a “special military operation” in Ukraine. Some enterprises have been compelled to divest for a nominal fee, while others have witnessed the seizure of their assets by the Russian state. Executives contend that navigating Russia’s exit requirements is becoming progressively challenging.
In relinquishing its Russian operations, Xerox Holdings takes a definitive step in aligning with the broader trend of Western businesses disengaging from the region amidst geopolitical tensions. The corporation’s decision emerges in the backdrop of Russia’s steadfast resistance to Western sanctions, while concurrently applying pressure on the remaining foreign entities.
Source: Reuters
