Korean electronics leading company assures ‘test restart’ of Russian plant
(MENAFN) LG Electronics has confirmed it has conducted a test restart of its Russian plant, which had been inactive since 2022 due to Western sanctions related to the Ukraine conflict. The company had halted all shipments to Russia and suspended operations at its Ruza plant near Moscow after the escalation of the war.
On Friday, South Korean media reported that partial operations have resumed at the facility, which previously produced washing machines and refrigerators. The test restart is aimed at preventing equipment from deteriorating, with only existing materials at the plant being used, according to an LG official. CEO Cho Joo-wan, speaking to Korea Times, said the company is being cautious given the ongoing conflict, adding that full operations may resume if sanctions are lifted.
LG, along with other major South Korean companies like Hyundai Motor Group and Samsung, is reportedly assessing the potential for re-entering the Russian market amid peace talks related to the Ukraine conflict. Unlike Hyundai, which sold its Russian plant in 2023 under the pressure of sanctions, LG remains careful in its approach.
Russian President Vladimir Putin has said that sanctions have inadvertently boosted Russia's economic and technological capabilities and emphasized that any return of foreign companies must be managed to protect domestic industries. He also mentioned that while Russia has not shut its doors to foreign companies, decisions will be based on market conditions, with no special incentives for sectors that are already filled. Prime Minister Mikhail Mishustin stated that a special commission will assess each company's situation individually.
This week, Italian company Ariston also announced it would resume operations in Russia after Putin's decree removed its Russian subsidiary from a list of companies under temporary state control.
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