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Samsung Electronics Halts All Shipments to Russia

Samsung is also donating $6 million, as well as voluntary donations from employees, to “actively support humanitarian efforts” for Ukraine


South Korea's Samsung Electronics on Thursday reported a 12% rise in quarterly profit due mainly to demand for high-margin memory chips.
A strong dollar, which hit a 20-year high, also aided chip profits, boosting Samsung's operating profit by about 1.3 trillion won versus the prior quarter. File photo: Reuters.

 

Samsung Electronics said on Saturday shipments to Russia have been suspended “due to current geopolitical developments”.

“We continue to actively monitor this complex situation to determine our next steps,” the company said in a statement.

Samsung said it is also donating $6 million, including $1 million in consumer electronics, as well as voluntary donations from employees, to “actively support humanitarian efforts around the region”, including aid for refugees.

The moves follow South Korea’s decision to tighten export controls against Russia by banning shipments of strategic items and join Western countries’ moves to block some Russian banks from the SWIFT international payments system.

“The Korean government condemned Russia’s armed invasion of Ukraine,” the foreign ministry said.

“As a responsible member of the international community, [Seoul has] decided to actively participate in the international community’s efforts, including economic sanctions, for a peaceful resolution of the situation.”

Among the strategic items that could be controlled are supplies of electronics, semiconductors, computers, information and communications, sensors and lasers, navigation and avionics, and marine and aerospace equipment.

Shortly after the announcement, Russia’s ambassador to South Korea, Andrey Kulik, expressed regret, blaming “strong outside pressure” on Seoul from the west to join them in applying sanctions.

  • Reuters with additional editing by George Russell

 

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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

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