Nokia and Ericsson quit Russia
April 13, 2022
By Chris Forrester
Telco technology giants Nokia and Ericsson have said they will no longer operate in Russia.
Pekka Lundmark, CEO of Nokia, stated: “We just simply do not see any possibilities to continue in the country under the current circumstances.”
Nokia followed with a detailed statement on its decision, which read: “For humanitarian reasons, Western governments have expressed concerns about the risk of critical telecommunication network infrastructure in Russia failing. They have also emphasized the importance of ensuring the continued flow of information and access to the internet which provides outside perspectives to the Russian people. Therefore, as we exit we will aim to provide the necessary support to maintain the networks and are applying for the relevant licenses to enable this support in compliance with current sanctions. This is the most responsible course of action for Nokia to take as we exit the Russian market.”
Russia accounted for less than 2 per cent of Nokia’s net sales in 2021 and the company added that it does not expect an impact on its 2022 outlook. However, “we expect this decision to lead to a provision in Q1 of approximately €100 million which will impact our reported but not comparable financials”, Nokia said.
Ericsson recorded a $95.3 million provision in its Q1 2022 results for impairment of assets and other exceptional costs relating to its Russian pull-out. Ericsson said it will put its some 600 employees in Russia on paid leave.