Due to the threat of sanctions Chinese techno giant Huawei sent Russian employees on unpaid leave. It will last a minimum month. Previously, the company has suspended the implementation of new orders for Russia because of the fact that Beijing is threatened by secondary sanctions for doing business with Moscow.
At the end of March, the company paused the action of new supply contracts and ordered some Moscow employees to work remotely. Their Chinese colleagues continued to visit the office.
It is unknown how many employees were suspended. In the hiring list of Huawei Technologies, it is stated 1200 people are working in Russia and neighboring states, 80% of which are local citizens.
However, this manufacturer also suspended business in Russia and snet employees on paid leave.
Huawei does not disclose data on work in Russia, but it is known that about 33% of network equipment in the country accounts for its products. Russian telecommunication operators expect a significant increase in accidents and interruptions on the network after current reserves run out in July and August. Huawei also reduced the supply of smartphones to the Russian Federation at least in half.
The US warn China not to help Russia to avoid sanctions. This makes companies and investors choose between business in Russia or in the West. However, the company can find a way to continue business with an aggressor – through intermediaries in third countries or other bypass. The situation can also change due to recent permission by the USA for business operations with Russia if they are related to communications.