Huawei furloughs staff in Russia

RUSSIA / FSU POLITICS - In Brief 14 Apr 2022 by Alex Teddy
On April 13 the Chinese telecoms giant announced the move. This is probably partly because China faces secondary sanctions for trading with Russia. The USA has warned China not to assist Russia economically.A leave of absence has been imposed on Huawei staff in Russia. New supply contracts have been suspended. Chinese staff based in Russia are still working. Huawei has cut back on marketing in Russia.Huawei Technologies employs 1,200 people in Russia and other former USSR countries. The great majority of these are in Russia.On April 11 Ericsson said it was suspending operations in Russia. Its staff are on gardening leave.Huawei makes up 33% of the networking gear and base stations installed in Russia. It is one of the biggest Chinese smartphone makers and it has reduced its shipments of phones to Russia by over 50% since February 2022.Huawei will probably carry on supplying Russia by using third countries. Russia has legalized parallel imports. Huawei might transfer IP rights to its products to Russian entities. Russia needs telecom equipment and data storage systems. Very few of these are available that are not US made.

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