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Huawei signs deal to develop 5G in Russian Federation

Huawei signs deal to develop 5G in Russian Federation

China's telecommunication giant Huawei technology has on Wednesday signed an agreement with Russia's telecoms MTS firm to develop the next-generation 5G technology in Russian Federation.

5G is the next generation cellular technology with download speeds stated to be 10 to 100 times faster than the current 4G LTE networks.

Reuters reported that the 5G awards could benefit vendors such as Huawei, as it struggles to overcome Western national security concerns and a blacklisting by the United States. MTS confirmed pilot 5G networks are scheduled to start this year, with further development in 2020.

Huawei also signed a cooperation agreement on 5G development with Russian mobile operator Beeline, controlled by the Veon Group, earlier this May. US officials say Huawei is a security risk.

The creation of the list has been seen as retaliation for the USA decision to put Huawei technologies on its own blacklist of companies banned from doing business with the U.S.

It will hurt Huawei, the world's second largest smartphone maker, as it gets half of the chips it uses from U.S. suppliers.

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The US has encouraged allies to block Huawei - the world's largest maker of telecoms equipment - from their 5G networks, saying the Chinese government could use its products for surveillance.

The accelerated 5G rollout could help Huawei as Washington pushes its allies around the world to drop the firm from their 5G networks due to fears it could be used as a tool of Chinese state espionage, a claim that Huawei has repeatedly denied.

China hasn't said what action it might take against the entities included on its list.

One of Russia's leading mobile firms and Huawei agreed to cooperate in the field of 5G tech amid an ongoing pressure campaign against the Chinese tech titan, unleashed by the US.

Trump ordered tariffs of up to 25% on hundreds of billions of dollars' worth of Chinese exports and his administration is preparing to extend them to $300 billion more - nearly all items shipped to the USA from China. Big technology companies like Google, Microsoft, and Qualcomm have already cut ties off with Huawei.

According to sources close to the deal, some employees of Vokord will also be transferred to Huawei as part of the US$ 50 million agreement, according to sources close to the deal.