Huawei rumored to be getting contract with Russian telecom firm

RUSSIA / FSU POLITICS - In Brief 06 May 2019 by Alex Teddy

Chinese technology giant Huawei might be awarded a contract worth USD 384 million. This would involve providing equipment for telecommunications firm MTS. MTS needs this contract because the Yarovaya Law requires telecoms companies to gather data. Surprisingly this news did not come at the Belt and Road Forum. This not yet a done deal. American firm Digital West is still bidding for the contract. Some in Russia are chary about co-operating with Huawei and this explains the timing of the news. Deputy PM Maxim Akimov warned President Putin in April that three companies are dominating this sector in Russia. These are Cisco, Nokia and Huawei. Buying from the West is more difficult due to the RUR being relatively low. It also pleases Russia to buy from a non-Western country.Many Western countries suspect that Huawei will use its tech to spy on them. The Chinese Parliament passed a law last year mandating all companies to assist the intelligence services. The Russian Government is happy to capture huge quantities of data on its citizens. The trouble is the Chinese will gain access to much of it. Russian tech firms do not have the know how that the Chinese do. Rostec and trovals will probably soon be asking for subsidies to catch up with foreign competitors.

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