Huawei distances itself from the Russian market

Chinese telecommunications giant Huawei became the latest Chinese company to sever ties with Russia. Huawei recently decided to furlough its staff in Russia for at least one month, as well as suspend all new orders.

Western sanctions have alarmed companies doing business with Russia. The threat of secondary sanctions, in this case, being sanctioned for business deals with Russia even if the transaction does not use any western financial instruments, has led to a certain weariness. Huawei, in its decision to furlough its staff and halt new orders, concluded that dealing with Moscow was too big of a risk due to the United States’ toolbox of secondary sanctions.

Huawei’s relationship with Russia has been under increasing scrutiny since the beginning of Moscow’s invasion of Ukraine. In the United Kingdom, two non-executive board members resigned as Huawei refused to condemn Russia’s military actions in Ukraine. Late last month, Huawei publicly commented that it was carefully evaluating how it would respond to western sanctions. While shipments had already been falling due to the instability of the Russian ruble, Huawei finally called for an end to all new orders and shipments, as well as massively reducing its workforce at its Moscow office. However, the Russian daily, Izvestia,  reported that the furlough of staff and the absence of new orders actually began towards the end of March. This indicates that while Huawei was stating that it was carefully evaluating the situation, plans were already in motion to suspend new orders.

Nevertheless, it is illustrative that Huawei, a company that was deemed to have colluded with the Chinese government by British parliamentarians, has decided to stop working in Russia. After Chinese state oil refineries similarly suspended all new orders, the economic and business estrangement between Russia and China appears to be picking up steam. As more state companies halt operations in Russia, Moscow may wonder whether Xi Jinping claim that Sino-Russian relations have “no limits”, was an entirely accurate description of their relationship.

Sources: CommonSpace.eu with The Moscow Times (Moscow), Forbes (New Jersey), Izvestia (Moscow), and other media agencies.
Picture: Huawei Building (ITProPortal) 

Related articles

Editor's choice
News
Borrell tells the European Parliament that the situation in Afghanistan was critical, but the EU will remain engaged

Borrell tells the European Parliament that the situation in Afghanistan was critical, but the EU will remain engaged

Borrell underlined that the European Union will make every effort to support the peace process and to remain a committed partner to the Afghan people. "Of course, we will have to take into account the evolving situation, but disengagement is not an option.  We are clear on that: there is no alternative to a negotiated political settlement, through inclusive peace talks.
Editor's choice
News
Dunya Mijatovic: "Entrenched harmful stereotypes and prejudice against LGBTI people still prevail in segments of Georgian society, including some politicians"

Dunya Mijatovic: "Entrenched harmful stereotypes and prejudice against LGBTI people still prevail in segments of Georgian society, including some politicians"

On March 27, the Council of Europe Commissioner for Human Rights, Dunja Mijatović, issued a statement calling on the Georgian government to “fully respect” its human rights obligations as a Council of Europe member state, “including with regard to the protection of the human rights of LGBTI people,” in response to the ruling party’s initiation of two draft constitutional laws on “family values and the protection of minors.” “I am concerned about the present political discourse in Georgia, as illustrated by the announcement made by the Georgian Dream Party of their initiative to amend the Constitution and to adopt a new constitutional law on ‘Protection of Family Values and Underaged Persons’. It is reflective of entrenched harmful stereotypes and prejudice against LGBTI people which still prevail in segments of Georgian society, including some politicians, and is capable of having a strong, negative impact on the human rights, safety and well-being of LGBTI people and defenders of their rights. It also represents the political manipulation of LGBTI-phobia in the run-up to elections, which I have previously condemned, and which should have no place in a democratic society, based on the rule of law and respect for human rights of everyone.

Popular

Editor's choice
News
Dunya Mijatovic: "Entrenched harmful stereotypes and prejudice against LGBTI people still prevail in segments of Georgian society, including some politicians"

Dunya Mijatovic: "Entrenched harmful stereotypes and prejudice against LGBTI people still prevail in segments of Georgian society, including some politicians"

On March 27, the Council of Europe Commissioner for Human Rights, Dunja Mijatović, issued a statement calling on the Georgian government to “fully respect” its human rights obligations as a Council of Europe member state, “including with regard to the protection of the human rights of LGBTI people,” in response to the ruling party’s initiation of two draft constitutional laws on “family values and the protection of minors.” “I am concerned about the present political discourse in Georgia, as illustrated by the announcement made by the Georgian Dream Party of their initiative to amend the Constitution and to adopt a new constitutional law on ‘Protection of Family Values and Underaged Persons’. It is reflective of entrenched harmful stereotypes and prejudice against LGBTI people which still prevail in segments of Georgian society, including some politicians, and is capable of having a strong, negative impact on the human rights, safety and well-being of LGBTI people and defenders of their rights. It also represents the political manipulation of LGBTI-phobia in the run-up to elections, which I have previously condemned, and which should have no place in a democratic society, based on the rule of law and respect for human rights of everyone.