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Huawei suspends some Russian operations, fuloughs Russia staff

TechHuawei suspends some Russian operations, fuloughs Russia staff

Beijing (Times Of Ocean)- Chinese telecoms giant Huawei Technologies Co is preparing to withdraw from Russia by furloughing some local employees and suspending (some Russian operations) new contracts with operators, Forbes Russia reports.

Huawei, already under US sanctions, cancels new orders and furloughs Russia staff due to sanctions threats.

The Chinese company has furloughed part of its staff in its Moscow office for a month in April after suspending all orders from the market, a report last week cited anonymous sources as saying. It was also reported that Huawei cut jobs at the marketing department, but employees from China still came into the office.

The Shenzhen-based technology firm Huawei declined to comment.

The move comes as companies still operating in Ukraine attempt to avoid secondary sanctions from the United States and Europe following Russia’s invasion of Ukraine on February 24. In a move seen as a warning to Chinese companies, the US Treasury Department issued a number of new sanctions earlier this month.

The Russian newspaper Izvestia also reported this month that Huawei has suspended new contracts for supplying network equipment to Russian operators since the end of March.

In Moscow, some of its employees have also been told to work remotely, according to the report. The report also cited an anonymous source who said Huawei may reassess its product portfolio in Russia and continue selling equipment made without US technology.

Huawei vice-chairman Guo Ping said at the end of March that the company was assessing the risks to its operations after the Russia-Ukraine War.

“We’ve noticed that some countries and regions have issued some policies, and they’re complex and constantly changing. Huawei is still carefully assessing these policies,” Guo said in response to a question about whether Huawei would pull out of Russia to avoid risking additional sanctions.

Several Chinese companies have been caught in the crossfire from western sanctions imposed on Russia in the wake of its incursion into its western neighbour.
Under the US export sanctions, any technology goods made in foreign countries using American machinery, software or blueprints are banned from being exported to the country.

The Chinese government is unable to criticize Russia’s actions or call it an invasion because Beijing’s growing ties with Moscow prevent it from doing so. It has also opposed the widespread sanctions on Russia.

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