Connecticut elevator and escalator maker Otis scales back Russia operations

Elevator and escalator maker Otis Worldwide announced Friday that it was scaling back its operations in Russia, becoming the latest Connecticut-based company to reduce its presence in the country following its invasion of Ukraine.
The No. 236 company on the 2021 Fortune 500 list said in a statement that it would not take new elevator and escalator orders and not make new investments in the country “for the time being.” Operations in Russia comprised about 2 percent of Otis’ 2021 revenues, based mostly on new equipment sales.
“We remain deeply concerned about the crisis unfolding in Ukraine. The ensuing loss of life and the escalating refugee crisis are tragic,” the Farmington company’s statement said. “In light of these developments and the ongoing supply chain disruptions, we have reassessed our operations in Russia.”

All the stories, all the time
“Guided by our values, we are working diligently to ensure we do the right thing for our colleagues impacted by this decision,” the statement added. “We will continue to fulfill our existing agreements and provide essential equipment maintenance services, as possible, while remaining in full compliance with all sanctions.”

Otis also announced that it was making contributions to Global Giving’s Ukraine Crisis Relief Fund and the U.N. Refugee Agency (UNHCR) to help provide aid for Ukrainian refugees. In addition, it said that “where available, we are also matching our colleagues’ financial contributions to amplify the impact of their giving.”

Earlier this week, two of Connecticut’s other Fortune 500 companies, New Britain-headquartered toolmaker Stanley Black & Decker and Stamford-bound tobacco producer Philip Morris International, announced that they were, respectively, shutting down business and scaling back manufacturing in Russia.

As of Friday, more than 340 major companies had reduced their presence in Russia since its invasion of Ukraine, according to an online tracker maintained by Yale School of Management. Other companies that are headquartered or have major operations in Connecticut that have decreased their business in the country include Booking Holdings, WWE, Diageo and Henkel.