Ericsson and Nokia Suspend Business in Russia

Ericsson and Nokia Suspend Business in Russia
Fotolia

Following the war in Ukraine, global companies are freezing their activities in Russia. New additions to the long list are Ericsson and Nokia.

Ericsson halted its operations in Russia as it seeks to comply with international sanctions imposed in the weeks after the country invaded Ukraine. The vendor noted it would record a SEK900 million ($95.5 million) provision in its Q1 earnings for impairment of assets and other exceptional costs.

Nokia is going a step further. While several sectors, including telecoms, have been exempted from some sanctions on humanitarian or related grounds, the Finnish company said it had decided that quitting Russia was the only option. The company will continue to support customers during its exit, and it is not possible to say at this stage how long the withdrawal would take.