Data center News
HPE Shuts Down Russia, Belarus Operations Over Ukraine War
‘We totally condemned the Russia invasion,’ said HPE CEO Antonio Neri. ‘Unfortunately there is no resolution in sight, and it is no longer tenable for us to maintain our operations there.’
Hewlett Packard Enterprise is shutting down its Russia and Belarus operations in the wake of Russia’s invasion of Ukraine.
HPE said it is “proceeding with an orderly, managed exit” of its remaining business in those countries as a result of the invasion.
HPE had already suspended shipments to Russia and Belarus soon after the invasion began in late February.
“We decided to wait 90 days to see if there was some sort of resolution to the conflict,” said HPE CEO Antonio Neri in an interview Wednesday with CRN. “We totally condemned the Russia invasion. Unfortunately there is no resolution in sight, and it is no longer tenable for us to maintain our operations there.”
HPE has recorded a $126 million pre-tax charge for its second fiscal quarter, ended April 30, related to the impact of the Russia-Ukraine conflict. HPE expects less significant charges related to the exit in the current quarter.
HPE’s Russia and Belarus business represented less than two percent of HPE’s business in 2021.
“We need more global companies like HPE to step up on this issue,” said Michael Goldstein, CEO of LAN Infotech, a Fort Lauderdale, Fla.-based solution provider that has supported the Ukrainan cause with donations and assistance by supporting a relief effort started by its CTO Tim Lambrecht. “We couldn’t be prouder of Tim, who went to Poland for seven weeks as a volunteer to provide medical assistance to Ukrainian refugees. Every company should be looking to do whatever they can to support Ukraine.”
HPE Executive Vice President and Chief Financial Officer Tarek Robbiati said ending Russia services contracts, combined with the unexpected COVID shutdowns in China, impacted HPE revenue by more than $250 million in the second fiscal quarter and earnings per share by six cents per share.
Global companies both in and out of the tech sector have curtailed their business in Russia to varying degrees in the wake of the invasion, with some going as far as selling off their assets.
HP Inc. Tuesday said during its quarterly earnings call that it would cease all operations in Russia, while Schneideer Electric on April 27 said it intends sell its Schneider Electric Russia operations to local management.
Last month, U.S. fast-food giant McDonalds, one of the most recognizable brands in the world, said it is leaving Russia and has begun the sale of its business. The announcement came on the same day French car company Renault Group unveiled unanimous board support for agreements to sell off its Russia business.