Czech drone maker Primoco UAV withdraws from Russia over sanctions

Prague, Feb 21 (CTK) - Czech drone maker Primoco UAV wound up its business activities in Russia, where its drones had provided civilian services, at the end of January due to the sanctions imposed on Russia by the EU, the company told CTK today.

As a result of the sanctions, the company, whose shares are traded on the Prague Stock Exchange, cannot obtain a new export licence needed to operate its unmanned aircraft in Russia.

Primoco UAV cannot meet its commitments and develop business on the Russian market due to Czechia and the EU's current diplomatic relations with Russia, CEO Ladislav Semetkovsky said on the company's website.

The company's Russian branch lost contracts worth RUB1bn (Kc282bn) this year alone, he said.

"I don't expect any major improvement in relations between Europe and Russia in the foreseeable future, so we have decided to take this decision and sell 100% of the shares," he added.

The EU and the USA imposed trade sanctions on Russia in 2014 in response to Russia's annexation of Ukraine's Crimean Peninsula. The EU and the USA have said that the sanctions would be tightened in the event of Russia's invasion of Ukraine. In recent weeks, Russia has gathered up to 190,000 troops along the Ukrainian border.

Primoco UAV's unmanned aircraft were the only drones certified for civil operations in Russia and were used to monitor oil and gas pipelines and fires, Semetkovsky said.

They cannot obtain an export licence as they are dual use goods, which can be used for both civil and military applications.

The company has found a local buyer for the Russian branch and has withdrawn its drones from Russia.

Primoco UAV manufactures civil and military unmanned aircraft One 150 of its own design. They are used on three continents for example to monitor pipelines and energy distribution networks, borders, coastlines and fires, and in search and rescue operations.

hel/er/bst