Viktor Vekselberg sanctioned in Poland, Sulzer and Medmix affected

Sulzer and Medmix have to suspend their activities in Poland because of their shareholder, Viktor Vekselberg. In the crosshairs of the Polish authorities because of the war in Ukraine, the Polish government decided to go further in the reprisals.

The Polish activities of the industrial conglomerate Sulzer are hampered by sanctions imposed by the local government once morest its two subsidiaries, the Winterthur company said on Monday. Sulzer Pumps Wastewater Poland and Sulzer Turbo Services Poland, which employ 192 people, are no longer allowed to do business in the country.

If the suspension of activities continues, this might weigh up to 21 million francs on sales, which represents around 0.6% of total revenue in 2021.

The Polish sanctions apply to Viktor Vekselberg, who owns 49% of Sulzer’s shares through Tiwel Holding. These sanctions are now extended to the two Polish subsidiaries of the group, “although Mr. Vekselberg has no control or ownership over any subsidiary of Sulzer and is deprived of his economic rights at Sulzer”, writes the company in a press release. The company thus considers that these sanctions are “erroneous” and continues to plead for their withdrawal.

Separately, Medmix also announced the shutdown of its Wroclaw production site due to the same Polish sanctions. Viktor Vekselberg owns 40% of the shares of Medmix, via Tiwel Holding. Medmix Poland is therefore no longer authorized to continue its business.

The management strives to remove the company from the list of sanctioned companies, but in the absence of a response, is forced to stop its production, which generates weekly sales of 1.6 million francs, specifies the press release. Medmix has 283 employees in Poland.

Oerlikon, which also counts Viktor Vekselberg in its shareholding up to 41%, via Liwet Holding, has not yet indicated whether the new Polish sanctions will hamper its activities, while the company has several production sites in Poland.

ats, awp