(WO) — Baker Hughes agreed to sell its Oilfield Services business in Russia to its local management team, and the business will operate independently going forward, the company announced.

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

The new business will operate independently of Baker Hughes – including an independent brand – and it 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. The company said it is committed to supporting its employees throughout this process and ensuring an orderly transfer for its customers and relevant parties.