Xiaomi Corporation, the leader in the sale of smartphones in the Russian Federation, was included in the list of international sponsors of the war
The National Agency on Corruption Prevention (NACP) has included Xiaomi Corporation in the list of international war sponsors. In 2021, the company became the leader in terms of smartphone production in the world, it also produces household appliances, tablets, smart watches, software, electric scooters, electric bicycles and much more.
The reason for inclusion in the list of international sponsors of the war was that the company not only continued its work in the Russian Federation after the full-scale invasion, but is still the leader in smartphone sales in the terrorist state.
From 2018 to today, Xiaomi has been the number one seller in online stores in Russia, and also has a large network of official Mi Store authorized retail stores throughout the Russian Federation.
While the Russians bombed peaceful Ukrainian cities, Xiaomi managed to increase deliveries to the Russian Federation by 39% in the third quarter of 2022 compared to the previous one.
Thus, during 2022, Xiaomi doubled its market share and is now the leader in smartphone sales in the aggressor country. In July 2022, Xiaomi and its sub-brand POCO together held 42% of the Russian smartphone market, taking first place in terms of sales.
According to official data, in 2021, the Russian division of Xiaomi received revenue of 202 million dollars. USA. These are huge funds, from which no less serious amounts of taxes are paid. Then, at the expense of these same taxes, the Russian army is supported, which is killing Ukrainians today.
The Russian market is extremely important for this Chinese company, which is why Xiaomi did not even announce its plans to leave the Russian Federation, although it has not conducted marketing activities in Russia since the spring of 2022.
Moreover, Xiaomi is now actively resuming recruitment for its Russian offices and has announced the official start of sales of flagship smartphones, which indicates the company’s intentions to restore a full-fledged presence in Russia. Yes, Xiaomi Corporation is sponsoring the military aggression of a terrorist state and must bear both the reputational and legal consequences of its actions.
We will remind that NACP has already included 21 companies in the list of international sponsors of the war. All listed companies are included in World-Check, a database of high-risk individuals and organizations used worldwide to identify and manage financial, regulatory and reputational risks.
Cooperation with such companies becomes risky and undesirable for anyone in the international market, which protects the international financial sector from Russian war sponsors.
You can find out more about the role of NACP in sanctions policy in the Individual Sanctions Roadmap developed by the Stanford International Working Group on Russian Sanctions.