Korean Companies in Russia Face Business Disruptions Due to Western Sanctions

Agriculture and Shipbuilding Companies Face Difficulties Importing Parts and Materials, Maintenance Declines

As Western sanctions against Russia continue due to the Ukraine crisis, Korean companies operating in the Far East region are experiencing disruptions in their activities.

At an event hosted by the Korean Consulate General in Vladivostok on the 19th at the Lotte Hotel Vladivostok in Primorsky Krai, Korean agricultural companies voiced their difficulties. These companies produce corn, soybeans, oats, potatoes, and other crops in Ussuriysk, Primorsky Krai, exporting them to Korea or selling them locally. However, they are facing challenges in maintaining agricultural machinery necessary for planting due to the aftermath of the Ukraine crisis. This is because the manufacturers of the agricultural machinery have withdrawn from Russia.

On the 19th, an event was held at the Lotte Hotel Vladivostok in Primorsky Krai, Russia, to understand the difficulties faced by Korean companies operating in the Far East region and to explore support measures.
[Image source=Yonhap News]

An official from one company said, "The overseas manufacturer of the agricultural machinery withdrew from Russia after the Ukraine crisis," adding, "The delivery time for parts, which used to take 1 to 2 months, has now extended to 3 to 4 months." He further explained, "We are having difficulties maintaining the machinery in time for the planting season."

The shipbuilding industry is facing similar issues. Due to Western sanctions, it is difficult to import parts and materials necessary for ship construction into Russia. At the Zvezda Shipyard in the small city of Bolshoy Kamen in Primorsky Krai, three Korean shipbuilding companies, including Samsung Heavy Industries and Hyundai Samho Heavy Industries, are constructing crude oil tankers and liquefied natural gas (LNG) carriers to be supplied to the Russian side.

Some companies attending the meeting stated that although they face restrictions on their business in Russia due to Western sanctions, they continue to stay locally and carry out humanitarian activities.

Ko Mun-hee, Deputy Consul General of the Korean Consulate General, said, "Due to the international situation caused by the Ukraine crisis, the operation of our companies in Russia is unstable," and added, "We will strive to find support measures to resolve the difficulties faced by companies as much as possible."

Meanwhile, about ten representatives from Korean companies and residents in sectors such as energy, distribution, shipbuilding, and agriculture attended the event.

This content was produced with the assistance of AI translation services.