Russia-Ukraine Situation Severe Local Logistics Situation Following Samsung Electronics, LG Electronics also announced that it would suspend export shipments of all products to Russia. The product was suspended due to local geopolitical issues following the Russian invasion of Ukraine.
LG Electronics announced through the global newsroom on the 19th that “LG Electronics will stop all shipments to Russia and continue to monitor the development of the situation.”
“We are deeply concerned about the health and safety of all people, and LG Electronics is doing its best to support humanitarian relief efforts,” he said.
A view of LG Electronics Ruza factory in Russia
LG Electronics has been regarded as an important market as sales in Russia are increasing every year. LG Electronics ‘LG Electronics RUS, LLC’ They established one place to produce and sell refrigerators and washing machines locally. In Russia, LG Electronics is competing with Samsung for the first place in home appliances such as washing machines and refrigerators.
According to LG Electronics business report, sales in Russia and neighboring countries last year amounted to 2.335 trillion won, accounting for 2.7% of total sales. Last year, LG Electronics sales in Russia increased by 22% compared to the previous year. Thanks to this growth, LG Electronics has been strengthening its marketing by launching ‘LG Object Collection’ in Russia since November last year. However, as the supply of products to Russia is halted this time, it is analyzed that it will cause considerable damage to LG Electronics home appliance business.
Earlier, Samsung Electronics also announced on the 5th that shipments to Russia had been temporarily suspended due to geopolitical circumstances such as local logistics. The timing of when shipments from both companies will resume is undecided.