Samsung has halted product shipments to Russia due to current geopolitical developments, joining a growing list of companies that have suspended sales and services in the country following its invasion of Ukraine last week. Exports of all Samsung products to Russia, from chips to smartphones and consumer electronics, have been suspended. The company stated in a statement that it is actively monitoring the complex situation to determine its next steps, emphasizing that the safety of all its employees and their families is a priority.
The company has donated $6 million for humanitarian efforts in the region, including $1 million in consumer electronics products, alongside voluntary donations from its employees. This move isolates Russia from a significant range of products from one of the world's largest electronics vendors.
In addition to concerns about the war, doing business in Russia has become challenging for foreign companies due to sanctions, the U.S. ban on transactions with the country's central bank, and the sharp decline of the ruble. Microsoft condemned the unjust and illegal Russian invasion of Ukraine, announcing that it would halt all new sales of products and services in Russia. Apple has halted iPhone sales and begun limiting Apple Pay services and other popular products in Russia, also removing the RT News and Sputnik News applications from app stores outside the country.
HP, the largest supplier of personal computers to Russia, and Intel have both suspended exports to the country. Before Samsung's announcement, Mykhailo Fedorov, the Ukrainian Deputy Prime Minister overseeing digital operations, sent a message to Samsung's Vice President, urging the Korean tech giant to temporarily cease providing services and products to Russia. Fedorov expressed in his message, "We believe such actions will motivate the youth and active population in Russia to proactively stop the shameful military aggression. We need your support. Perhaps modern technology in 2022 is the best response to tanks, rocket launchers, and missiles targeting residential areas, kindergartens, and hospitals."
Samsung is a leading smartphone seller in Russia, holding a market share of just over 30 percent. Sales of smartphones in Russia account for about 4 percent of the company's global revenue from devices, while semiconductor sales represent less than 0.1 percent. The company also owns a television manufacturing plant in Russia.
Despite South Korea receiving an exemption from U.S. export controls against Russia, the suspension of shipping and flight routes to the country complicates the ability of Korean companies to send products to the region. Korean Air announced it is halting cargo services to Moscow for two weeks, while the shipping company HMM has stopped bookings in and out of St. Petersburg.
