The company first arrived in Russia in 1851 to deliver devices for a major telegraph line. It primarily does maintenance work on high-speed trains these days — though it's now winding down operations.
It was seen as a way for Russia to prop up its currency and retaliate for Western sanctions, but it could cause global energy prices to spike. One analyst sees it as a warning to the rest of Europe.
The move was widely seen as an effort to prop up the ruble and strike back at Europe amid an onslaught of Western penalties levied against Russian banks.
The city is preparing to retrain some workers and give temporary public works jobs to thousands more as a growing number of Western companies distance themselves from Russia.
German authorities impounded the 15,917-ton yacht after confirming that sanctioned Russian billionaire Alisher Usmanov had transferred ownership to his sister, who is also under Western sanctions.
Events over the past week have brought Russia precariously close to its first default on foreign debt since the Bolshevik Revolution over a century ago.
Meanwhile, the Russian economy is expected to contract by some 11% this year as a result of sanctions, and several other countries in the region are projected to fall into recession.