South Korea’s LG Electronics Anticipates Restart Of Moscow Production Plant

South Korea’s LG Electronics has carried out a test restart of its manufacturing plant in Ruza, near Moscow, which produces washing machines and refrigerators. The facility has been closed since operations were suspended in 2022 due to Ukraine conflict-related Western sanctions. LG halted all deliveries to Russia and suspended operations shortly after the escalation of the conflict.

Western governments have previously stated that parts in various white goods supplied to Russia, such as washing machines, could be used in military equipment.

LG officials have said that the test is to “prevent equipment corrosion” and that only existing on-site materials are being used. LG’s 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.

President Vladimir Putin has said that Russia “never closed its doors or expelled anyone”, 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. Last 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.