A major Chinese company is leaving Siberia due to sanctions, and more than a thousand local residents could lose their jobs.

Chinese company "Longxing" announced  on the closure of the mining and processing plant in Tuva, which has been operating since 2015.

"In connection with the significant expansion of sanctions and the refusal of Chinese banks to work with Russian financial institutions," the CEO's order explains.

According to the document, this has already led to delays in payment for delivered products, triggered inspections by regulatory authorities, and created an administrative burden.

The Chinese mining and processing plant in Tuva is capable of processing up to a million tons of ore per year and is the largest taxpayer in the republic: its revenue for last year amounted to almost 20 billion rubles. The company employs 1200 people.

The Tuva government calls this decision “temporary” and hopes for negotiations.

About mass layoffs сообщают and workers of the pipe plant, which is located in Sverdlovsk Pervouralsk. According to them, management is forcing employees to resign voluntarily to avoid official layoffs and compensation payments. The alleged reason is a drop in order volumes, and the company could ultimately lose a total of 500 people.

Photo: Tyva Ministry of Energy