LG Electronics suspended production at its manufacturing facility near Moscow in March 2022 due to Western sanctions

South Korea's LG Electronics has confirmed it has carried out a test restart of its Russian plant, which has been idle since operations were suspended in 2022 due to Ukraine conflict-related Western sanctions.

LG halted all deliveries to Russia and suspended operations at its plant in Ruza, near Moscow, shortly after the escalation of the conflict.

On Friday, South Korean media reported a partial resumption of operations at the facility, which previously produced washing machines and refrigerators.

The move is aimed at "preventing equipment corrosion," an LG official told RIA Novosti on Friday, adding that only existing on-site materials are currently being used.

LG CEO Cho Joo-wan, quoted by Korea Times on Friday, said the company remains "cautious, as the conflict is not yet over," and is closely monitoring the situation. Full operation could resume once sanctions are lifted, he added.

Several major Korean firms, including LG, Hyundai Motor Group and Samsung, are reportedly evaluating a return to the Russian market amid ongoing Ukraine peace negotiations.

An LG representative noted the company's situation differs from Hyundai's, the carmaker announced plans in 2023 to sell its Russian plant, and completed its exit from the country under pressure from Western sanctions.

President Vladimir Putin has repeatedly said sanctions had inadvertently strengthened Russia's economic and technological base and that any potential return of foreign companies must be carefully managed to protect domestic companies.

Russia "never closed its doors or expelled anyone," Putin said recently, adding that confidential talks with some foreign businesses are already underway. However, he noted that future decisions will depend on market conditions, and no special incentives will be granted if sectors are already occupied.

According to Prime Minister Mikhail Mishustin, a special government commission will assess each company's case individually.

This week, Italian appliance maker Ariston announced it would resume operations in Russia after Putin signed a decree removing its Russian unit from a list of companies under temporary state control.

(RT.com)