‘Stop doing business with Russia'

Following Russia's invasion and continued attacks on Ukraine and its citizens, companies around the globe have halted business with the aggressor in the conflict.

And after Ukrainian forces discovered the use of some automotive suppliers' products in Russian artillery last month, one official took to social media to demand answers and support from those companies.

Kostiantyn Koshelenko, deputy minister of social policy of Ukraine for digital development, digital transformation and digitization, called out four automotive parts manufacturers by name on social media in mid-March and included a photo of a Danfoss part used in a Russian military vehicle.

"The Ukrainian armed forces seized Russian military vehicles and discovered that the Tigr and Pantsir missile system used Bosch, ZF Group, Danfoss and Mann+Hummel parts," he posted to Twitter and LinkedIn, with a call for companies to halt business in Russia.

"Stop the supply of spare parts and stop doing business in Russia before the end of the bloody war against Ukraine and the entire civilized world," he said.

In direct response, Bosch commented the same day on Koshelenko's post that it was "deeply distressed" by Ukraine's suffering and that the company had launched an investigation on the use of its products in the Russian military.

"We take the allegations of the Ukrainian foreign minister very seriously—they were brought to our attention late yesterday evening and we immediately launched a thorough investigation," the German engineering company commented. "The Ukrainian foreign ministry contacted us directly about this and we were able to determine that while the component in question was made by Bosch, Bosch did not supply it to the vehicle manufacturer."

Bosch said its engine and transmission components for heavy-duty vehicles come with a "clear contractual requirement" to be used for civilian applications only when it comes to supplying Russian automotive customers.

"As a matter of principle, Bosch does not develop, manufacture or sell any weapons or any systems and components for military and defense use, nor does it conduct any military research and development as part of its global strategic orientation," it added. "We are, of course, complying and will continue to comply with all legal and statutory requirements, including sanctions."

On March 18, the deputy minister updated his post in response to Bosch's reaction to Russia's use of its products, noting the company has suspended its business in Russia.

German auto parts manufacturer ZF made its own LinkedIn post on the matter to condemn the war against Ukraine.

ZF also said it had "ceased all deliveries to Russia" about two weeks prior to its March 17 post.

"Our team expresses solidarity with the Ukrainian people and the innocent victims of this war," the company said, adding that it "acts with strict adherence to international sanctions and high ethical standards."

ZF noted its transmission products from its ZF Kama joint venture "are produced exclusively for civilian use" and that its halted deliveries to Russia include parts and spare parts.

"At least since 2014, our contracts exclude military use of our vehicle parts. To use a ZF product (made) for civilian applications for military purposes, one would have to deliberately falsify the documentation and misuse the part," the company said. "Where such illegal behavior is brought to our attention, we would have an immediate obligation to stop all further deliveries and inform the relevant authorities."

The company said it supports its Ukrainian employees by offering paid leave and evacuation aid to families. The company also launched "ZF helps" to collect donations to help Ukrainian refugees.

"ZF is a company that cherishes peace and rejects aggression and violence," the company concluded. "We hope for a peaceful resolution as soon as possible."

In an email to Rubber News, a Danfoss spokeswoman confirmed that the company had received a direct letter from Koshelenko inquiring about its position in the war.

"Danfoss was one of the first companies to put all business in Russia and Belarus on hold, and we are taking all measures to support our Ukrainian team and their families," the representative said. "Our priority remains the safety and security of all Danfoss team members and their families."

She said Danfoss' General Counsel Anders Stahlschmidt responded directly to the Ukraine official via a letter and that the company immediately conducted an investigation on the company products' use in Russian arms.

"You have every right to demand ethical behavior in times of war," Stahlschmidt wrote. "We are devastated as the war unfolds and innocent people are suffering in Ukraine. Danfoss condemns the invasion of Ukraine, and we fully support and comply with all sanctions."

The company official identified the photographed Danfoss component to be a solenoid valve produced in Kolding, Denmark, or Grodzisk, Poland.

"Usually solenoid valves are used for refrigeration and air conditioning, and (it) is not a unique product," he said, noting the product is used in "many places and applications by different companies" and sold by many suppliers, including Danfoss.

He said Danfoss has no sales to Russian military vehicle manufacturers.

"We continue to monitor the situation and to act in full compliance with all sanctions as they develop. I can also confirm that all new business in Russia is on hold," he continued, adding Danfoss had put Russian operations on hold on Feb. 28—days after Russia invaded Ukraine.

At the time of his letter to Koshelenko, Stahlschmidt informed him that Danfoss was collecting and matching donations from its employees to its team in Ukraine and their families.

Danfoss has a warehouse in Ukraine's capital, Kyiv. It relocated its Ukrainian employees and their families to Poland, Romania, Germany and Spain, according to Stahlschmidt's letter.

Mann+Hummel did not return requests for comment by press time.