Cisco Destroys Equipment in Russia Worth $23Mln After Quitting Country's Market

In March 2022, Cisco suspended its business in Russia and Belarus and announced its departure from the Russian market. However, the company intended to maintain communication with partners and customers to tackle financial issues, including refunds for pre-paid services and software.

According to the financial statements of Cisco Systems' Russian subsidiary, the American network equipment and software manufacturer physically destroyed its inventory in Russia worth $23.4Mln.

"The stocks were physically destroyed in January 2023, therefore the reserves against decreases in the value of tangible assets as at 31 December 2022 are shown at full stock value of 1,864,002,000 rubles," the company report reads.

The decision to dispose of the inventory was made in August of last year, and the destruction took place in January 2023. The equipment consisted mainly of spare parts for equipment. The reason for the destruction was the cessation of sales and services, as well as the suspension of licenses and services by Cisco, and the inability to re-export the inventory.

In July to August, the company terminated most of its employment contracts, resulting in a total payment of $2.39Mln to employees and mandatory contributions to extra-budgetary funds.