Chinese telecommunications company Huawei has reportedly suspended sales in Russia and placed some of its staff in the country on furlough.
After Ericsson and Nokia announced this week that they would suspend or cease operations in Russia, many observers expected the country to turn to Chinese suppliers like Huawei for network equipment. Huawei has long faced accusations of close ties to Beijing, which has not condemned Moscow for its invasion of Ukraine or for alleged abuses by Russian forces.
If Huawei is indeed reducing its presence in Russia, the move could be intended to signal a degree of independence from the Chinese government and to reduce reputational and regulatory risks.
International sanctions on Russia have limited the country’s access to advanced technologies. U.S. authorities have warned that companies that help Russia circumvent sanctions could face secondary sanctions themselves, which adds pressure on suppliers that might otherwise fill the gap left by Western firms.
Huawei, which has previously been affected by stringent U.S. restrictions, is reported to be worried about the possibility of secondary sanctions that could further harm its global business.
A source told Forbes Russia that “Huawei, due to fear of secondary sanctions, suspended all orders in Russia.”
Since being placed on the U.S. Entity List, Huawei has relied on existing stocks of American semiconductors for its equipment. Over time, however, the company will need to transition to alternative components that are generally less advanced. Industry analysts estimate China still has at least two to three years of development before it can produce semiconductors comparable to leading Western chips.
Despite reports of furloughs, Huawei continues to list positions in Moscow on LinkedIn. Many advertised roles are research and development positions, but listings for “IP Pre-Sale Manager” and “IT Pre-Sale Manager” indicate the company may still be maintaining some commercial operations and customer-facing functions in the country.
Russia’s detachment from Western technology suppliers increases its reliance on China, but access to Chinese technologies is not guaranteed if companies such as Huawei choose to retreat—whether for ethical concerns, legal risks, or economic reasons tied to potential sanctions.
(Image Credit: © Huawei)
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