- 12 May 2022
- Transport / Logistics Services
In response to the ongoing war in Ukraine, DPDgroup is selling its Russian business after suspending shipments to the country.
In a statement the international final mile delivery company said, “We are deeply shocked by the violence of the war in Ukraine and by its devastating impact on the lives of millions of innocent people. We stand in solidarity with international sanctions and apply them without restriction.”
DPDgroup suspended shipments to and from Russia on the 28th February after the country invaded Ukraine. The La Groupe La Poste owned company has taken the decision to withdraw from the Russian and Belorussian market altogether.
Employing 3,000 staff in Russia, DPD’s operation primarily operated domestic delivery services to individuals and small businesses. It had worked into the country since 2004.
The company said, “We are currently preparing an ownership transfer operation, in compliance with applicable regulatory requirements. Throughout the transition process, GeoPost/DPDgroup will continue to fulfil its obligations to its customers, suppliers, and employees. We anticipate a risk of impairment in the value1 of the company.”
When the transfer of ownership is complete, the new company will operate independently of GeoPost/DPDgroup and the former owners will then have no presence in Russia. It says it will not benefit from the transfer of ownership.
The DPDgroup statement concluded, “In the face of this tragedy, we hope that peace will be restored in the nearest possible future.”
As the West has turned its back on Russia with such moves, it seems its government has looked elsewhere to countries such as India, and there are signs of economic recovery. As such moves like this are great public relations exercises but won’t necessarily have the desired impact.