John Deere join firms suspending business in Russia

Deere said Ukraine and Russia account for about 3% of its annual sales.

Two of the world’s largest manufacturers of machinery equipment needed for farms and construction sites said they suspended business in Russia following the nation’s invasion of Ukraine, further isolating the country from the global economy.

Deere & Co said it halted shipments of machines to Russia two weeks ago as the nation invaded Ukraine, and subsequently stopped deliveries to Belarus. Caterpillar said it suspended operations at its plants in Russia as doing business in the country has become increasingly challenging due to factors including supply chain disruptions and sanctions.

Deere is the world’s largest producer of farm equipment ranging from tractors to planters to combines. Caterpillar producers equipment critical to the construction, mining and oil and gas industries across the globe.

“John Deere is deeply saddened by the significant escalation of events in Ukraine,” Jennifer Hartmann, a Deere spokeswoman, said in an emailed statement. “Two weeks ago, we suspended shipments of machines to Russia and then subsequently, Belarus. We continue to monitor the situation closely while we fully abide by US and international sanctions.” 

Deere said Ukraine and Russia account for about 3% of its annual sales. Deere manufactures seeding and tillage equipment in Orenburg, Russia, and has a parts depot in Domodedovo, Russia. There’s also a marketing office in Kyiv, Ukraine, for its agriculture and turf business. 

Caterpillar has a plant in Tonso, Russia that makes mining trucks and excavators, as well as components shipped to European factories. It also has in Moscow a replacement parts distribution centre.

Bloomberg