Huawei faces dilemma over Russia links that risk further US sanctions

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The last time Western sanctions hit Russia after it annexed Crimea, President Vladimir Putin turned to Huawei to rebuild and upgrade the territory’s communication infrastructure. Now, the controversial Chinese technology company is positioned to aid the Putin regime on a much larger scale, despite the threat of Washington hitting it with more sanctions.

In Crimea, Russia “ripped out Western telecom gear in the heavily militarized territory and replaced it with Huawei and ZTE,” said Hosuk Lee-Makiyama, a telecoms expert at the European Centre for International Political Economy. If Nokia and Ericsson do fully exit Russia, Moscow would “need Chinese companies more than ever, especially Huawei,” he said.

Despite an initial plunge in phone shipments, Huawei has been an early winner from the Ukraine war. Its phone sales in Russia rose 300 percent in the first two weeks of March, while other Chinese brands Oppo and Vivo also recorded triple-digit sales increases, according to analysts at MTS, Russia’s largest mobile operator.

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