Korean tech conglomerate announces 'test restart' at Russian facility
LG Electronics has confirmed that it has conducted a test restart of its manufacturing facility near Moscow, which has been inactive since production was halted in March 2022 due to Western sanctions linked to the Ukraine conflict. Following...
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LG Electronics has confirmed that it has conducted a test restart of its manufacturing facility near Moscow, which has been inactive since production was halted in March 2022 due to Western sanctions linked to the Ukraine conflict.
Following the escalation of the conflict, LG suspended all deliveries to Russia and ceased operations at its Ruza plant, located near Moscow.
Recent reports from South Korean media indicate that there has been a partial resumption of operations at the facility, which traditionally produced washing machines and refrigerators.
An LG official informed RIA Novosti on Friday that the purpose of this action is to “prevent equipment corrosion,” noting that the company is currently utilizing only pre-existing materials on-site.
LG CEO Cho Joo-wan expressed caution regarding the situation, as quoted by the Korea Times on Friday, stating that the company is maintaining a watchful eye on developments, emphasizing that “the conflict is not yet over.” He mentioned that full operations could potentially resume once sanctions are lifted.
Several South Korean corporations, including LG, Hyundai Motor Group, and Samsung, are reportedly assessing the feasibility of re-entering the Russian market amid ongoing peace discussions regarding Ukraine.
An LG spokesperson clarified that the company's circumstances differ from those of Hyundai. In 2023, Hyundai announced its plans to sell its Russian facility and successfully exited the country in response to Western sanctions.
President Vladimir Putin has consistently maintained that sanctions have inadvertently bolstered Russia’s economic and technological foundation, asserting that the return of foreign companies would have to be managed cautiously to safeguard domestic enterprises.
Putin recently stated, “Russia never closed its doors or expelled anyone,” adding that confidential discussions with certain foreign businesses are already ongoing. However, he indicated that future decisions would depend on market conditions, with no special incentives available for sectors that are already occupied.
Prime Minister Mikhail Mishustin mentioned that a dedicated government commission will evaluate each company’s situation on a case-by-case basis.
In related news, this week, Italian appliance manufacturer Ariston announced its plans to resume operations in Russia after Putin signed a decree that removed its Russian subsidiary from a list of companies under temporary state control.
Emily Johnson contributed to this article for TROIB News
Following the escalation of the conflict, LG suspended all deliveries to Russia and ceased operations at its Ruza plant, located near Moscow.
Recent reports from South Korean media indicate that there has been a partial resumption of operations at the facility, which traditionally produced washing machines and refrigerators.
An LG official informed RIA Novosti on Friday that the purpose of this action is to “prevent equipment corrosion,” noting that the company is currently utilizing only pre-existing materials on-site.
LG CEO Cho Joo-wan expressed caution regarding the situation, as quoted by the Korea Times on Friday, stating that the company is maintaining a watchful eye on developments, emphasizing that “the conflict is not yet over.” He mentioned that full operations could potentially resume once sanctions are lifted.
Several South Korean corporations, including LG, Hyundai Motor Group, and Samsung, are reportedly assessing the feasibility of re-entering the Russian market amid ongoing peace discussions regarding Ukraine.
An LG spokesperson clarified that the company's circumstances differ from those of Hyundai. In 2023, Hyundai announced its plans to sell its Russian facility and successfully exited the country in response to Western sanctions.
President Vladimir Putin has consistently maintained that sanctions have inadvertently bolstered Russia’s economic and technological foundation, asserting that the return of foreign companies would have to be managed cautiously to safeguard domestic enterprises.
Putin recently stated, “Russia never closed its doors or expelled anyone,” adding that confidential discussions with certain foreign businesses are already ongoing. However, he indicated that future decisions would depend on market conditions, with no special incentives available for sectors that are already occupied.
Prime Minister Mikhail Mishustin mentioned that a dedicated government commission will evaluate each company’s situation on a case-by-case basis.
In related news, this week, Italian appliance manufacturer Ariston announced its plans to resume operations in Russia after Putin signed a decree that removed its Russian subsidiary from a list of companies under temporary state control.
Emily Johnson contributed to this article for TROIB News
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