Telecoms equipment manufacturers Ericsson and Nokia are pulling out of Russia following the country’s invasion of Ukraine and the subsequent imposition of sanctions by the UK, EU, US and others.
Hundreds of companies have withdrawn from Russia or scaled back their presence there over the past few weeks, although telecoms was one industry given an exemption from sanctions on humanitarian grounds.
Nonetheless, both Ericsson and Nokia had already suspended deliveries to partners in the country but have now decided to take further action following a review of their respective businesses.
Russia telecoms
Ericsson has confirmed it is temporarily suspending its activities in Russia, placing its staff on paid life, while Nokia has gone one step further and indicated it will withdraw entirely.
“In the light of recent events and of European Union sanctions, [Ericsson] will now suspend its affected business with customers in Russia indefinitely,” Ericsson said in a statement. “Ericsson is engaging with customers and partners regarding the indefinite suspension of the affected business.”
“We just simply do not see any possibilities to continue in the country under the current circumstances,” Nokia chief executive Pekka Lundmark told Reuters. “A lot would have to change before it will be possible to consider again doing business in the country.”
Nokia said it would support its operator customers during the withdrawal, but did not offer an indication as to how long the process would take. It did confirm, however, that the decision would affect around 2,000 employees, some of whom could be offered jobs in other parts of the world.
Both companies have a limited presence in Russia, with Chinese vendors Huawei and ZTE far more influential. Russian authorities had indicated any mobile operator wishing for an extension to their licence would have to commit to building networks using equipment made in the country.
Ericsson’s suspension means it is no better placed to fulfil that requirement, while Nokia has said it will not proceed with a planned joint-venture to build base stations in the country.
Via Reuters
