The tension between Russia and Ukraine continues at full speed. As the ongoing war passes its first-year mark, no progress has been made towards a ceasefire or peace agreement, leaving both countries negatively impacted. Ukraine is nearly in ruins due to the ongoing conflict, while Russia faces isolation from the rest of the world and numerous global companies, resulting in a severe economic downturn. However, it’s not just countries that are affected by this situation; neutral and multinational corporations are also experiencing significant losses. Ukraine recently accused Xiaomi of being an “International War Sponsor”. Here are the details…

Xiaomi Accused of Being an “International War Sponsor” by Ukraine

Xiaomi has unexpectedly found itself embroiled in the ongoing conflict between Russia and Ukraine, with serious accusations being leveled against the company. National Agency for the Prevention of Corruption of Ukraine (NAZK) announced that Xiaomi was added to the list of “International War Sponsors.” The Ukrainian government cited two primary reasons for this decision.

Authorities claim that Xiaomi has remained active in the Russian market and has been a leading smartphone brand in the country since the conflict between Russia and Ukraine began. While Xiaomi has not conducted marketing campaigns since spring 2022, the company still holds a significant market share in Russia.

Since 2018, Xiaomi has been dominating online sales in Russia, boasting a vast network of official authorized retail stores. Recent NAZK data revealed that Xiaomi’s market share in Russia doubled in 2022, with Q3 deliveries increasing by 39% compared to the previous quarter. In the previous year, Xiaomi’s revenue in Russia reached a staggering $202 million.

The press release from the Ukraine stated that the decision to include Xiaomi in the list of international war sponsors was based on the company’s continued operation in Russia after its “full-scale invasion.” Despite these circumstances, Xiaomi remains the leading smartphone brand in what the Ukrainian government refers to as a “terrorist state.”

Xiaomi has consistently ranked first in sales on Russian online stores since 2018 and maintains a massive offline official authorized retail network throughout the country. In 2022, Xiaomi doubled its market share in Russia, solidifying its position as the nation’s leading smartphone brand. By July 2022, Xiaomi and its sub-brand POCO held a 42% market share in Russian smartphone sales, ranking first in terms of revenue.

Xiaomi ukraine

Official data shows that, in 2021, Xiaomi’s Russian subsidiary generated $202 million in revenue. The Ukrainian National Anti-Corruption Bureau claims that the taxes paid on this significant revenue have been used to support the Russian military and “fund the war against Ukraine.”

Xiaomi is currently actively resuming recruitment for its Russian office and has announced the official launch of its flagship smartphones, indicating the company’s intention to fully restore its operations in Russia. Consequently, the Ukrainian government accuses Xiaomi of sponsoring a terrorist state’s military aggression and believes the company will face the reputational and legal consequences of its actions.

As of now, the Ukrainian National Anti-Corruption Bureau has included 21 companies in its list of international war sponsors. Xiaomi’s inclusion in this list comes as a shock to many and highlights the far-reaching effects of the ongoing conflict between Russia and Ukraine on the global tech industry.

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