History
2022: Transfer of divisions in Russia and Belarus to a separate business
On November 22, 2022, it became known that Huawei had allocated Russia and Belarus as a separate business with an office in Moscow. We are talking about the Huawei Enterprise division supplying IT and telecommunications solutions to corporate customers.
According to Vedomosti, the work of Huawei Enterprise in all other CIS countries, except Russia and Belarus, will be supervised by the vendor's headquarters in Bahrain. Specialists responsible for business development in Russia and Belarus partially remained in Moscow, and were partially relocated to China, one of the informed interlocutors told the publication.
In the revenue of the Eurasia region, the share of Russia was about 70% for Huawei Enterprise, and the rest of the CIS countries accounted for no more than 30%, estimates Telecom Daily CEO Denis Kuskov. According to his calculations, the revenue of the Russian subsidiary Huawei Enterprise is approximately 115-130 billion rubles, excluding independent imports. Russia for Huawei Enterprise was indeed a priority market in terms of money, confirms the interlocutor of the publication, close to the company.
According to Andrei Zeltyn, senior lecturer at the HSE School of Oriental Studies, Bahrain has a number of advantages for Huawei Enterprise. This is practically absent taxation for foreign companies, the absence of taxes on individuals, corporate income tax. At the same time, social ratios for foreigners are limited to 3%, and VAT does not exceed 10%.
Zeltyn also emphasizes that Bahrain became the first Middle East country where Huawei began to develop its 5.5G network. According to the expert, Bahrain will become a test territory of the Middle East market.
Dividing the business into two parts is a logical solution for Huawei, agreed Mikhail Burmistrov, head of Infoline Analytics. Russia and Belarus are countries with a high level of sanctions risks, the procedure for concluding transactions in which will differ from the CIS countries.[1]
Notes
| The site content is translated by machine translation software powered by PROMT. The machine-translated articles are not always perfect and may contain errors in vocabulary, syntax or grammar. Read original article If you find inaccuracies or errors in the results of machine translation, please write to editor@tadviser.ru. We will make every effort to correct them as soon as possible. |