[Update: Xiaomi Official Statement]Ukraine’s National Agency on Corruption Prevention has flagged Xiaomi as an international war sponsor
Ukraine’s National Agency on Corruption Prevention official website has flagged the Chinese corporation Xiaomi as an international war sponsor. Its list is getting longer with already 21 companies in the list that have been flagged as international sponsors of the war by NAZK.
What happens after being added to this list?
As soon as a company is added to the list, it is automatically included in World-Check, a database of high-risk individuals and organizations used worldwide to identify high-risk individuals and organizations. This database is used by companies all across the world to identify and manage financial regulatory and reputational risks.
This makes it hard for other international companies to rely on such risky groups and companies.
What’s the reason behind it?
The official website has mentioned that the working of Xiaomi in Russia even after the full-scale invasion is one of the reasons for this. Another point it has mentioned is Xiaomi being the leader in smartphone sales in terrorist states( NZAK referring to Russia ). When Ukraine was attacked by Russia, Xiaomi’s deliveries in Russia grew by 37% in the third quarter of 2022 compared to the previous one. As far as sales share is concerned Xiaomi along with its sub-brand POCO held 42% of the Russian smartphone market which makes it stand first in terms of sales.
According to NAZK, the official data reveals that Xiaomi received revenue of 202 millions dollar USA in 2021. With such a huge amount of revenue, Xiaomi is paying a high amount of tax to Russia. Now according to NAZK, Russia is using these tax returns for the war and affecting Ukraine. Ukraine’s step to flag Xiaomi as an international sponsor of war has not yet drawn any response from Xiaomi though it would be interesting to see how Xiaomi responds.
Update: statement from Xiaomi
Statement Xiaomi is a consumer electronics company, offering products solely for civilian and commercial use. We believe that every consumer in the world has the right to access comunication tools and information on the internet. We have consumer businesses in more than 100 countries and regions, and adhere to all laws and regulations in every jurisdiction where we operate. We are strongly against the accusation from the Ukrainian National Agency on Corruption Prevention (NACP) that we are “International sponsor of war”. We don’t support any war actions. We fully embrace world peace. Our mission is to let everyone in the world enjoy a better life through innovative technologies.
Statement pic.twitter.com/12R9c2lwF4
— Xiaomi (@Xiaomi) April 14, 2023
