Otis reaches agreement to sell Russian business to S8 Capital

MOSCOW, Jul 27 (PRIME) -- U.S. elevator and escalator producer Otis has reached an agreement to sell its business in Russia to holding S8 Capital, according to statements of Otis and Russia’s Industry and Trade Ministry released on Wednesday.

“After carefully considering the global impacts and consequences of the ongoing crisis and humanitarian tragedy across Eastern Europe, including supply chain disruptions and mounting regulations, we determined that Otis’ ownership of our business in Russia is no longer sustainable, and we have entered into an agreement with Ice Development to sell 100% of our interest in the Otis Russia business,” the company said.

The ministry said that Russian holding company S8 Capital was the ultimate buyer, while Ice Development was a technical participant in the transaction.

Deputy Prime Minister and Industry and Trade Minister Denis Manturov said, as cited by the authority, that former Otis factories in Russia will start taking orders and resume their operation on August 1.

Manturov also said that the deal guarantees that supplies of necessary components will continue.

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