Members of Lider’s Exporters Club whose securities are listed on the Zagreb Stock Exchange have expressed to the interested public the impact of the Russian-Ukrainian crisis and the sanctions imposed on Russia on their business operations.
Ericsson Nikola Tesla Group announced that it has no contractual obligations in Russia and Ukraine, but that the situation is currently adversely affecting the realization of contracted jobs in Belarus, where the company has a local firm with 25 employees. Among the most important activities are the expansion of LTE networks for local operators and the informatization of the central health system. Revenues from these activities in 2021 accounted for about four percent of the Group’s total sales results. Although the situation is demanding and uncertain, the Management and executive management assess that the Group is business and financially stable. A possible interruption of activities in Belarus would certainly affect the planned sales revenue, operating margin, and operating cash flow, but would not undermine the business and financial stability of the Group.
JGL states that it has closely monitored the developments and was aware of the risks in its planning, which was taken into account when designing activity plans for 2022. The company has already experienced a similar situation in 2014 and 2015 in that market, but today it is much better prepared and more resilient than it was then, therefore it will manage this crisis in its best interest, as well as in the interest of its employees. The Ukrainian market is one of the most important for JGL, with market sales of 13 million euros in 2021. The fact is that business in that market is currently stalled. In Russia, however, it is currently operating without difficulties, but exposure to currency risk due to the depreciation of the Russian ruble is increasing. However, all of JGL’s export receivables are secured in banks or insurance companies, which guarantees business stability.
