How Sanctions are Affecting the Russian Elevator Market

When the world's top five elevator makers walk away from a country overnight, buildings don't stop needing elevators. That is exactly what happened in Russia — and the ripple effects are reshaping the global elevator supply chain.

Since the war in Ukraine began, most western companies have pulled out of Russia entirely. Fast food giants grabbed the headlines by selling operations to local firms. But the real infrastructure damage runs deeper — IT companies, pharmaceutical firms, and heavy industries all shut shop. Their exit disrupts supply chains that take decades to build.

Elevator companies rank among the hardest-hit sectors. The top five global elevator manufacturers — all based in North America or Europe — control more than two-thirds of the worldwide market. These firms made a decisive choice to leave Russia. Their departure left builders, building owners, and maintenance teams with very few alternatives.

How is the Russian Elevator Market Suffering Due to the Withdrawal?

The withdrawal hurts Russia's elevator market in two critical ways: new installations and spare parts.

New Elevator Supply for High-Rise Projects

High-rise and skyscraper projects demand high-speed, specialized elevators with proven reliability. Only the top five western manufacturers have traditionally met that standard. With their exit, Russian builders now turn to Chinese suppliers as the primary alternative.

However, Chinese suppliers face a credibility gap. Even China's own skyscrapers rely on elevators from western manufacturers. Russian developers are choosing these untested suppliers out of necessity, not confidence — the preferred vendors simply no longer operate in the market.

Spare Parts Shortage

The second major problem is spare parts availability. Existing inventory within Russia provides a short-term buffer. But as time passes, that stockpile will run dry.

Buildings equipped by the large multinationals face the worst risk. These systems use proprietary control panels, drives, and related components. Finding replacements outside official channels is extremely difficult. Many building owners will eventually need a full modernization — replacing proprietary control systems with locally available or non-proprietary alternatives.

These supply-side pressures are already forcing creative solutions on the ground.

Who is Completing the Pending Projects?

Former employees of the departing elevator companies play a pivotal role here. Many continue pursuing builders and building owners, promising to fulfill existing deliveries. Some even accept new orders despite the uncertain environment.

How they manage the logistics — both shipping and financial — remains unclear, but the process appears extremely difficult. Meanwhile, some multinational firms are divesting their Russian operations under terms that require continued spare parts delivery until the divestment completes.

Beyond pending projects, the day-to-day reality for employees and customers is shifting fast.

How are Employees and Customers Coping?

Local employees of the multinational companies hold critical institutional knowledge. They understand the Russian market, know spare parts sources, and can identify viable alternatives. Delivering on new projects remains difficult, but they can keep existing maintenance contracts running. These contracts generate enough revenue to keep local entities afloat.

Customers now source elevators from overseas — primarily China, Turkey, and India. China and Turkey hold a logistics advantage over India due to shorter shipping routes. China also dominates global elevator component manufacturing. Even the big multinationals operate large factories there, meaning most elevators worldwide already contain Chinese-made parts.

Russian infrastructure companies are also banding together to approach vendors as a group. Government-backed institutions, including banks, actively help these companies identify and connect with new suppliers across product categories — elevators among them.

This upheaval creates significant challenges, but it also opens doors for agile suppliers.

Opportunities and Challenges

Financial logistics pose the biggest hurdle. Russian banks struggle to transfer funds in US dollars due to sanctions. However, they have developed workarounds — guaranteeing transfers in local currency to sellers in countries like India. Shipping routes are also adapting. Cargo ships from various countries now arrive at Russian ports. Costs run higher than before, but the logistics work.

This creates real opportunity for elevator companies in China, Turkey, and India. They can supply elevators directly to Russian elevator firms or to infrastructure developers. But only certain companies can seize this moment — those with proven export experience, quality track records, global shipping expertise, on-the-ground connections in Russia, and knowledge of local certification requirements.

Conclusion

The exit of the top western elevator companies from Russia marks a historic shift in the global elevator supply chain. Most major manufacturers are divesting their Russian operations. Yet the market will not collapse. Former employees are leveraging maintenance contracts to keep local entities running while they transition to new management and new supply sources.

Customers face higher costs, longer wait times, and unfamiliar suppliers. But for elevator manufacturers in China, Turkey, and India, this disruption is a once-in-a-generation opening. The companies best positioned to win are those that combine export quality, shipping expertise, and local market knowledge.

Sanctions reshaped the Russian elevator market overnight. The companies that adapt fastest — on both the supply and demand side — will define its future.