Since the beginning of the year, the American manufacturer of network equipment Cisco Systems has destroyed inventories in the Russian Federation for 1.86 billion rubles. The same fate awaits the rest of the company’s property, including the IT team, reports TASS with reference to the financial statements of Cisco’s legal entity in Russia – Cisco Systems.
Cisco suspended its activities on the territory of the Russian Federation in March last year due to the outbreak of hostilities on the territory of Ukraine. In June, the company announced its official withdrawal from the Russian and Belarusian markets.
It was decided to dispose of the equipment in August, the reason being the suspension of licences, obstacles to re-export and lack of sales. It appears from the documents that the company will also destroy all computer equipment and demo samples.
The MPZs, which have since been scrapped, include working parts for various pieces of equipment. They were purchased under an agreement with the Dutch Cisco Systems International BV
Vehicles from the Russian division, furniture and office equipment were also recycled.
The documents note that from June to August 2022, Cisco Systems LLC terminated employment contracts with the majority of the team in the Russian Federation. As a result, the company had to pay employees and extrabudgetary funds about 191 million rubles.
At the end of 2022, five people worked in the Russian division. At the end of 2021, the team consisted of 60 people.
As the media previously wrote, the American Citigroup cannot sell the Russian business because the bank mainly uses software from Cisco and Oracle. Penalties do not allow you to transfer equipment and software to a future buyer.
Author:
Natalia Gormaleva
Source: RB
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