DJI to temporarily halt operations in Russia and Ukraine
Fears of possible sanctions by EU countries behind drone maker’s decision, analyst says
Chinese drone maker DJI Technology says it will temporarily suspend all business activities in Russia and Ukraine, becoming the first mainland technology company to halt Russian operations since the war began in late February.
The Shenzhen-based company said in a statement on its website on Tuesday the decision was made after an internal assessment of “compliance requirements in various jurisdictions”.
The world’s leading drone manufacturer has found itself under intense scrutiny after accusations emerged that its products were being used by the Russian military in Ukraine.
DJI issued a statement a week earlier saying its products were designed to “improve people’s lives” and “for civilian use” only.
Few Chinese tech companies have publicly announced a suspension of business with Russia, partly because the Chinese government holds an official stance that opposes sanctions against Moscow.
“The decision was prompted by the possible shutdown of [DJI] sales as a result of secondary sanctions by other markets, primarily EU countries,” said Igor Denisov, a senior research fellow of the Institute for International Studies at Russia’s MGIMO University.
“Apparently, it is not meant as a complete and final withdrawal from the Russian and Ukrainian markets, but a temporary suspension of business during the hot phase of the conflict. This line of behaviour may be followed by other Chinese companies that sell dual-use equipment.”
Chinese telecoms giant Huawei Technologies, already under US sanctions, is preparing a retreat from Russia by furloughing some local employees and suspending new contracts with operators, according to a report by Forbes Russia.
Huawei has not confirmed the report. At a press conference last month, its then rotating chairman, Guo Ping, said the company was assessing its policies in different markets.
Unlike their Western counterparts, Chinese firms have largely remained quiet over questions about their Russian operations. A few days after Russia launched the invasion, Chinese ride-hailing giant Didi Global back-pedalled an earlier decision to cease operations in the country.
A spokesperson with DJI was quoted by Reuters as saying the suspension of business in Russia and Ukraine was “not to make a statement about any country, but to make a statement about our principles”.
DJI did not immediately reply to requests for further comment.
In early March, Ukraine’s VicePrime Minister Mykhailo Federov said Russian troops were “using DJI products to navigate their missiles”, to which DJI responded by saying it could not deactivate individual drones.
In last week’s statement, DJI said it “does not market or sell our products for military use” and “has unequivocally opposed attempts to attach weapons to our products”.
[It’s] a temporary suspension of business during the hot phase of the conflict
IGOR DENISOV, UNIVERSITY RESEARCHER