US contracting giant Baker Hughes has signed an agreement to sell its oilfield services business in Russia (OFS Russia) to its local management team.

The agreement follows Baker Hughes’ previously announced suspension of new investments for its Russia operations and the company’s commitment to comply with applicable laws and sanctions.

The new business will operate independently of Baker Hughes — including an independent brand — and will assume all current OFS Russia assets, liabilities and commercial obligations.

The transaction is expected to close in the second half of 2022, subject to the approval of local authorities. Baker Hughes said it is committed to supporting its employees throughout this process and ensuring an orderly transfer for its customers and relevant parties.