Bonava cannot continue to pursue a sound residential development in St. Petersburg. Bonava will evaluate the best course of action for the company to responsibly conclude ongoing production. Bonava has 810 units in production.

"First and foremost, the Russian invasion of Ukraine is an escalating humanitarian disaster. Due to the highly uncertain situation in the world, we have today decided to close the operations in St. Petersburg. This is a necessary decision, but also a minor one in light of the suffering brought about by the conflict in Ukraine. We feel a great sense of responsibility for our employees and for our customers," says Peter Wallin, President and CEO, Bonava.

Bonava has 370 employees in St. Petersburg and is currently reviewing possible solutions for how the company can provide them with support. It is too early to determine what financial effects the decision of closing the Russian operation will have on the Group, but the company’s management is committed to act in the best long-term interest of Bonava.

In 2021, net sales in St. Petersburg were SEK 745 M, corresponding to approximately 5 per cent of the Group’s net sales. St. Petersburg accounted for SEK 155 M of total operating profit in 2021. Reported equity in St. Petersburg were SEK 666 M on the 31 of December 2021. St. Petersburg’s share of total equity in the Group were 8 per cent.

Bonava is making a donation to UNHCR, which is assisting people displaced in Ukraine.