OREANDA-NEWS The number of Russian companies producing telecom equipment and electronics is declining: over the past year, about 10% of vendors have moved assembly to China, Vietnam and Turkey, and many small manufacturers have merged with large ones. The main reasons, market participants say, were sanctions pressure and additional checks of components supplied to the Russian Federation.

Ivan Pokrovsky, Executive Director of the Association of Electronics Developers and Manufacturers, told Kommersant that over the past 12 months, about 10% of companies that develop and manufacture telecom equipment, computing equipment, industrial and other electronics at contract manufacturing facilities in Russia or had their own assembly lines have moved production to other countries. According to him, equipment of 3 thousand organizations was previously produced on the territory of the Russian Federation. The migration of Russian developers of electronic equipment to foreign contract production has intensified, confirms the trend of the president of Zelax (domestic manufacturer of telecom equipment) Sergey Sukhman. Basically, companies are moving production to China, Vietnam, India and Turkey, says Mr. Pokrovsky.

There are several factors in favor of moving production abroad now, experts say. "This is both the workload of Russian production facilities and sanctions restrictions on the supply of foreign components to the Russian Federation," says Mr. Sukhman. Mr. Pokrovsky also recalls the inspections of imported components in the Russian Federation:

"Permission to import chips containing cryptography requires a lengthy check at the FSB licensing center, and permission to import finished products under its own brand is easy to obtain through the registration of notifications."