Following Samsung Electronics
LG Electronics has suspended product shipments to Russia amid maritime logistics disruptions caused by Russia’s invasion of Ukraine and worsening macroeconomic conditions in Russia, such as the sharp depreciation of the Russian ruble, due to international sanctions against Russia.
The company announced on March 19 that it has stopped all shipments to Russia and will keep a close eye on the development of the situation. MSC and Maersk, the world’s two shipping giants, have already stopped shipping services to Russia to block supply chains. HMM, Korea’s largest shipping company, has also temporarily suspended operations in the Far East since April 14.
LG Electronics has a production corporation in the Luza area on the outskirts of Moscow. It is leading the household appliances and TV markets in Russia. Although its production subsidiary in Russia is still in operation, it will inevitably suffer a setback if the inventory of core parts is exhausted. In 2021, LG Electronics’ sales in Russia and nearby regions totaled 2.335 trillion won.
Earlier, Samsung Electronics halted shipping all products to Russia on March 5. Samsung has a TV production corporation in the Kaluga area near Moscow. Samsung has maintained the top spot in the Russian smartphone market from 2007 to in 2021. Its market share stood at 30 percent in 2021, which was twice that of Apple's 15 percent.