Buzz Update Huawei will reduce its Russian operations in view of global sanctions TOU

Buzz Update Huawei will reduce its Russian operations in view of global sanctions

 TOU

Huawei will reduce its Russian operations in view of global sanctions

MOSCOW, Russia: Already due to US sanctions, Chinese telecom giant Huawei Technologies has fired some local Russian employees and suspended new deals with operators in Russia, Forbes Russia reported.

According to a report citing anonymous sources, Huawei-based Shenzhen’s furlogged a portion of its Moscow office staff in April after suspending all orders in the market.

Following the Moscow invasion of Ukraine on February 24, companies still operating in Russia aimed to avoid secondary sanctions from the US and Europe.

In a move that is seen as a warning to Chinese companies, the US Treasury Department issued several new sanctions earlier this month.

Meanwhile, the Russian newspaper Izvestia reported that Huawei had suspended new contracts from the end of March to supply network equipment to Russian operators.

Citing an anonymous source, the report added that in Russia Huawei could re-evaluate its product portfolio and continue to sell devices made without US technology.

Huawei Vice Chairman Guo Ping said the company was assessing the risks to its operations after the Russian invasion of Ukraine.

Responding to a question on whether Huawei would pull out of Russia to avoid additional sanctions, Guo said, “We note that some countries and regions have issued certain policies and that they are complex and constantly changing. Huawei is still carefully evaluating these policies.”

Many Chinese companies are caught up in the sanctions imposed on Russia by Western countries. Under US export restrictions, any technical goods made abroad using US machinery, software or blueprints are prohibited from being exported to Russia.

Beijing’s close ties with Moscow prevented the Chinese government from criticizing Russia’s military action or calling it an invasion.

As a result, many Chinese companies faced secondary sanctions and continued to operate in Russia.

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