Intel’s Russian business made no money last year and has only one employee
Intel’s Russian operations resulted in zero profits last year due to sanctions and restrictions imposed on the country by Western governments following Russia’s invasion of Ukraine more than two years ago, a recent study found. Abachy report.
In the same vein as the difficult year globally, the company’s two Russian entities, Intel AO and Intel Technologies, operated at a loss last year.
More generally: the whole Intel The corporate sector saw revenue fall 14% to $54.2 billion in the 2023 financial year, compared to $63.1 billion in 2022.
Intel in Russia might as well not exist
With 741 employees in 2022, Intel AO reported only one employee and director last fiscal year: Alina Klushina. Intel Technologies, which previously operated with 47 employees on its books, was ultimately left with only Klushina.
In the weeks and months that followed Russia’s invasion of Ukraine, Intel began scaling back operations in the country to support affected citizens and adhere to newly imposed sanctions. However, recently the company began offering certain driver downloads on its Russian site, which it said was in line with meeting its warranty obligations.
Russia not only represented a commercial opportunity for the California-based company, but also served as a key home base for its research and development center in Nizhny Novgorod β a site that became known for its work in software, AI, machine vision, 5G and IoT. After a renovation in 2020, the location alone employed approximately 1,000 employees.
Furthermore, Intel’s halt to trading in the country has not had the effect the company and sanctions authorities had hoped for, with Russian customers still largely able to import from countries that have not imposed such sanctions.