Raute has started a controlled shutdown of existing agreements with those Russian customers that are not under sanctions. The EU’s fifth sanction package against Russia released on April 8, 2022 included export prohibitions which are estimated to have an impact also on some of Raute’s deliveries to Russia. In addition, the logistics to Russia has become significantly more difficult due to the prohibitions having an influence on Russian transport companies. After that the company does not expect any net sales accruing from the remaining order book.
Raute’s order book on March 31, 2022 for Russian customers was Euro 78 million. The order book consisted of project and technology service deliveries both to operating mills and new plywood mill projects in Russia. Controlled shutdown of the order book through completing deliveries or ending the contract depends on how the payments and logistics work and on potential changes and interpretations of export restrictions and other sanctions.
Raute’s assets related to the Russian customers were Euro 9.4 million at the end of March. Raute’s balance sheets includes advance payments from Russian customers worth approximately Euro17.1 million at the end of March. There are risks related to these assets and received advance payments in case the controlled shutdown of contracts turns out to not be possible. Raute did not conclude any new contracts in Russia, as per its decision of March 4, 2022.
Order intake, at Euro 36 million, was at a good level. The order book at the end of the reporting period stood at Euro 152 million. Euro 2.4 million of the order intake is from Russia, which we received before Russia’s attack on Ukraine. The order book includes Euro 78 million in orders from Russia.
