What manufacturers are saying about the war in Ukraine
As Russia continues its invasion of Ukraine, nearly all aspects of the agricultural industry have been affected. Here’s what a few major manufacturers are saying in response to the crisis.
CNH says it commits to following all applicable sanctions imposed by the European Union, the United States, and those applied by other jurisdictions. It is closely monitoring any new measures as soon as they become effective. In the meantime, CNH says it’s temporarily putting shipments to Russia on hold for all products and parts, including components and sub-assemblies.
CNH Industrial says it remains committed to supporting all farmers and construction professionals, however, its future relationship with Russia is currently under review. CNH Industrial currently employs 207 employees in Russia with a central office in Khimki and an assembly plant in Naberezhnye Chelny. CNH has a nationwide commercial network of both agriculture and construction businesses, with a total of 28 dealers at 140 locations.
At this point in time, its Russian employees could be affected by a shutdown of the plant in Chelny since product and parts availability are likely to be impacted by the sanctions and ongoing logistical difficulties.
The company also directly employs 38 Ukrainian nationals at CNH industrial’s commercial office in Kyiv and has 10 distributors nationwide.
AGCO has 50 employees based in Ukraine, and says its first priority is the safety and protection of those employees and their families, as well as its dealers and farmers who are still working to secure the global food supply.
While Russia and Ukraine combined only represented 2% of AGCO’s sales in 2021, AGCO says Ukraine and Russia together represent a significant portion of the world’s wheat and corn exports.
AGCO says it’s essential to keep their farmers farming to ensure this humanitarian crisis does not also become a hunger crisis. To support this, AGCO has also evaluated and mitigated potential energy impacts to its European facilities.
“John Deere is deeply saddened by the significant escalation of events in Ukraine,” says Chad Passman, public and industry relations manager at Deere. “The safety, welfare, and well-being of our employees in the region remain top priorities.”
John Deere will continue to abide by all U.S. and international sanctions for as long as necessary, says Passman. The safety and well-being of its employees remains a topmost priority as the situation escalates. Deere did not specify how its business would be impacted.
“We’re focusing solely on the humanitarian part of it right now,” says Eric Raby, senior vice president of CLAAS for the Americas. “We have employees both in the Ukraine and Russia, and we’re wanting to make sure that they’re taken care of.”
Ukraine and Russia supply a significant amount of cereal grains not only to Europe, but to the rest of the world, and CLAAS wants to be ready to do what it can to take care of as many people as possible. CLAAS has employees in Ukraine who it’s been keeping in contact with on what can be done to help their situation. CLAAS’s office in Kyiv has been closed. Operations in Russia have been temporarily paused as well.
“Whether it’s a Russian colleague of ours or a Ukrainian colleague of ours, it’s still a CLAAS colleague of ours,” says Raby. “We just want to make sure that we stay in touch with them and be there to support them however we can.”
Kubota says it stands with those who stand for peace, and is concerned for the well-being of the people in Ukraine. Kubota North America and Great Plains Manufacturing canceled production of equipment orders from Russia, and is fully complying with domestic and international sanctions.
Kubota says it remains committed to confronting social issues related to food, water, and the environment during the humanitarian crisis in Ukraine. Kubota’s combined operations across the world are donating about $850,000 to support Ukrainian families through relief organizations. This money will go to providing aid, shelter, food, water, blankets, medical supplies, and protection to those in need.