A Chinese electronics factory in the Leningrad region of Russia has stopped working, which shows the growing the impact of Western sanctions on Moscow due to its war against Ukraine and the change in the dynamics of foreign business in Russia.
According to the report of the Kommersant newspaper; from November 7, the Hong Kong company TPV Technology, known as the world's largest manufacturer of computer monitors, stopped production at its factory in Shushar, where TVs were assembled for such big brands as Philips, Sony and Sharp.
The plant in western Russia, which has been operating since 2011, is now in the process of selling off components and equipment.
200% Deposit Bonus up to €3,000 180% First Deposit Bonus up to $20,000The closure comes amid growing concerns about secondary sanctions from the United States and the European Union targeting companies, particularly Chinese ones, that do business with Russia.
While TPV Technology’s Russian unit called the move a “strategic” decision to scale back its operations in the country, Kommersant, citing sources, said the threat of secondary sanctions was likely a key factor in the decision.
Last month, Washington imposed new sanctions targeting Chinese companies that produce sophisticated weapons systems in collaboration with Russian firms.
This marked a new stage in the US-China sanctions relationship, with the impact going beyond traditional sectors such as energy and technology.
In addition, Kommersant reported that Chinese banks are increasingly refusing financial transactions with Russia, fearing secondary sanctions. About 80 percent of payments from Russia to China in yuan are being returned, indicating a growing reluctance by Chinese financial institutions to take the risk of falling under US and EU sanctions.