Samsung Electronics, Hyundai Motor and other Korean exporters are facing increasing difficulties operating in Russia, as the country’s invasion of Ukraine has caused the suspension of shipments to Moscow and Saint Petersburg by sea, air and land, according to industry officials, Monday.
Last Saturday, Samsung Electronics suspended shipments of its semiconductors, smartphones and home appliances to Russia temporarily, citing “geopolitical reasons” that have led global shipping companies, air carriers and railway service operators to halt their service to the major cities of the world’s largest country.
But the tech giant has denied the claim that it has joined its foreign competitors, such as Apple and Intel, in imposing sanctions against Russia, as its television manufacturing plant in Kaluga near Moscow has continued operating smoothly.
However, the factory is unlikely to avoid setbacks in receiving components from other countries, if Russia’s military conflict with Ukraine continues.
“We are looking for countermeasures at this moment,” a Samsung Electronics official said.
Hyundai Motor's factory in Saint Petersburg is seen in this file photo. Courtesy
of Hyundai Motor
Hyundai Motor is facing uncertainties about resuming the operation of its factory in Saint Petersburg from this Wednesday.
Citing the global automotive chip shortage, the carmaker suspended the factory’s operation from last Tuesday to Saturday, planning to resume production after International Women’s Day in Russia on Tuesday.
However, given that the company’s subcontractors in Russia have been unable to produce auto parts due to the ongoing supply chain crisis, concerns are lingering over the possibilities of the factory halving its output or suspending production once again.
Most global shipping companies, including Maersk and MSC, have already stopped shipping cargo to Russia to support the international community’s sanctions against the country.
HMM, Korea’s largest shipping company, also informed freight owners late last month of the suspension of bookings for transportation to Saint Petersburg starting March 2. It is considering doing the same for transportation bookings to Vladivostok and Vostochny.
“Once we make our decision on the Far Eastern routes, we will immediately notify freight owners,” an HMM official said.
Flights to Russia’s major cities, which Samsung Electronics had been using to transport its smartphones, were also blocked.
Both Korean Air and Asiana Airlines decided recently not to stop over at Sheremetyevo and Domodedovo international airports in Moscow for the next two weeks, when carrying freight to Europe. They cited the impossibility of refueling at the Russian capital’s airports.
Air carriers from the U.S. and the European Union have already been banned from flying over Russia or landing in the country, just as the Western nations have also prohibited Russian planes from entering their airspace.
In addition, the Moscow-Kyiv line of the Trans-Siberian Railway has stopped operations since late last month, while bookings for the Moscow-Saint Petersburg line have been not available since early this month.
