Russia's Sputnik V coronavirus vaccines produced at Hankook Korus Pharm's factory in Chuncheon, Gangwon Province, are seen in this July 2021 file photo. Joint Press Corps

By Park Jae-hyuk

GL Rapha, one of the Korean manufacturers of Russia's Sputnik V and one-shot Sputnik Light coronavirus vaccines, has reaffirmed that it will continue producing and exporting the vaccines. The move contrasts with Huons Global, which decided recently to halt production of the Russian vaccines in Korea.

"We will continue the project as planned," a GL Rapha spokesman said Friday. "We received a good manufacturing practices (GMP) certificate from Russia and produced the vaccines for commercial use, so there is no reason for us to stop the project."

In 2020, GL Rapha signed an agreement with the Russian Direct Investment Fund (RDIF), the country's sovereign wealth fund, to export the Sputnik vaccines being produced at the factory of its subsidiary, Hankook Korus Pharm, in Chuncheon, Gangwon Province. The Korean firm also organized a consortium with several other local drug manufacturers for the project.

GL Rapha expects the vaccines to remain exempt from international sanctions on Russia for invading Ukraine, given that the U.S. Treasury Department issued general licenses to authorize transactions related to the COVID-19 pandemic. In addition, the company dismissed concerns about getting paid for its production, saying that it can consider various alternatives to receiving money through Russian banks.

Its exports of 5 million doses of vaccines stored in Korea, however, have been delayed due to the ongoing crisis.

"We will issue a press release, once we begin exporting the vaccines," its spokesman said. "We have continued talking with our Russian partner."

Huons Global, on the other hand, announced on Thursday that a consortium led by the company decided to stop producing the Russian coronavirus vaccines in light of the international situation.

"We apologize to those who encouraged our consortium," the company said in a statement. "Please understand that it was a difficult decision made after plenty of deliberation."

Humedix, a subsidiary of Huons Global, spent 10 billion won ($8.1 million) to build a production line for the Sputnik vaccine vials. The company plans to use the facility to manufacture other pharmaceutical products.

In Germany, the state of Bavaria decided to stop the production of Sputnik V vaccines, citing the sanctions against Russia. Bavaria's Minister-President Markus Soeder told the state's parliament last month that the vaccine's production will be blocked, even if it is approved by the European Medicines Agency (EMA).

RDIF, which markets the vaccines, claimed that a number of large Western pharmaceutical companies lobbied U.S. authorities to impose restrictions on the vaccine. Although it has denied involvement in any political activities, the sovereign wealth fund has been widely viewed as the main source of money for Russian President Vladimir Putin.