Chinese Electronics Plant In Russia Closes As Western Sanctions Bite

A Chinese-owned electronics plant in Russia’s Leningrad region has ceased operations, highlighting the growing impact of Western sanctions on Moscow over its war against Ukraine and the shifting dynamics of foreign business in Russia.

According to a report by the Kommersant newspaper on November 7, TPV Technology, a Hong Kong-based company known as the world’s largest manufacturer of computer monitors, halted production at its Shushary facility, which had been assembling TV sets for major brands like Philips, Sony, and Sharp.

The plant in western Russia, operational since 2011, is now in the process of selling off components and equipment.

The closure comes amid increasing concerns over secondary sanctions from the United States and European Union, which have targeted companies — in particular those from China — doing business with Russia.

While TPV Technology’s Russian branch called the move a “strategic” decision to scale down its operations in the country, Kommersant quoted sources as saying the threat of secondary sanctions was likely a key driver behind the decision.

Last month, Washington imposed its latest sanctions, targeting Chinese companies involved in producing complex weapons systems in collaboration with Russian firms.

That marked a new phase in the U.S.-China sanctions relationship, with ripple effects reaching beyond traditional sectors like energy and technology.

Further complicating the situation, Kommersant reported that Chinese banks have increasingly refused to engage in financial transactions with Russia, fearing secondary sanctions.

Around 80 percent of payments from Russia to China in yuan are being returned, signaling the growing reluctance of Chinese financial institutions to take on the risk of U.S. and EU sanctions.

/www.rferl.org