DJI Halts Business In Russia, Ukraine Amid War Use Accusations

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DJI Halts Business In Russia, Ukraine Amid War Use Accusations
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DJI announced it will halt its business in Russia and Ukraine, becoming the first prominent Chinese firm in doing so. Ukrainian authorities say drones made by the company have been used by the Russian military during the conflict.

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DJI To Leave

According to CNN Business, DJI released a statement saying that, in “light of current hostilities,” the manufacturer is “internally reassessing compliance requirements in various jurisdictions,” and would “temporarily suspend all business activities in Russia and Ukraine.”

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DJI has also underlined that it condemns any military use of its products, as Mykhailo Fedorov, Ukrainian Vice Prime Minister and Minister of Digital Transformation, said that Russian forces were using DJI products to support missile attacks.

In an open letter to DJI’s CEO Frank Wang, he said asked the company “to stop doing business in the Russian Federation until the Russian aggression in Ukraine is fully stopped and fair ordered is restored.”

The company sent CNN Business a statement saying, “We absolutely deplore any use of our products to cause harm.”

Uncomfortable Position?

Chinese companies might face economic backlash via secondary sanctions by the West in other key markets, as they continue to operate in Russia while the Chinese government claims neutrality.

According to The Washington Post, the war has put companies from the Asian giant in a position of remaining silent or adjusting their operations to diminish exposure to the Russian market.

Tech companies such Apple Inc (NASDAQ:AAPL) and IBM Common Stock (NYSE:IBM) have exited Russia, while the smartphone manufacturer Xiaomi Corp (HKG:1810) remains in the country.

When the war erupted in February, DiDi Global Inc – ADR (NYSE:DIDI), the Chinese ride-hailing company, announced it would leave Russia, only to reverse its decision without giving any explanation or accepting any request for comment.

Huawei was also under fire for not taking a stand over the Ukraine invasion, which prompted two U.K. subsidiary executives to resign. The company did not mention the conflict in a statement thanking both directors.

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Cristian Bustos is senior editor for ValueWalk.com. Previously, he was the news correspondent in Germany for Colombian radio broadcast Blu Radio, where he covered the 2017 German federal election and the 2017 G20 Hamburg summit. He was also public relations consultant to EY and HAYS, and has covered a wide range of topics including business, finance, and international relations, as well as verticals such as automotive, aerospace and renewable energy. Email him at cbustos@valuewalk.com.
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