Samsung Electronics suspends shipments to Russia

By: AFP
Published: 10:06 AM, 5 Mar, 2022
Samsung Electronics suspends shipments to Russia
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Samsung Electronics has suspended shipments to Russia over "geopolitical developments", the firm said Saturday, as major firms including Apple cut ties with the country over its invasion of Ukraine.

The South Korean tech giant is the world's biggest memory chip maker and the leading smartphone seller in Russia.

"Due to current geopolitical developments, shipments to Russia have been suspended," Samsung said in a statement.

"We continue to actively monitor this complex situation to determine our next steps."

The decision comes as Western governments, sporting organizations and big companies cut Russia off and deal it punishing sanctions over the internationally condemned attack on its neighbor.

Samsung controls just above 30 percent of the smartphone market share in Russia, according to Bloomberg News -- four percent of the tech giant's total global smartphone revenues. 

Sales of semiconductors in Russia, in turn, accounted for less than 0.1 percent of Samsung Electronics' profits, according to a report by Hana Financial Investment.

South Korea, a key US security ally, also this week announced it would block financial transactions with major Russian banks and their subsidiaries subject to US sanctions.

Samsung is also donating $6 million, including $1 million in consumer electronics as well as voluntary donations from employees, to "actively support humanitarian efforts" and refugees in the region, the firm said.

AFP

Agence France-Presse is an international news agency.