Ericsson Divests Its Local Customer Support Business in Russia

Ericsson’s Russian subsidiary has entered into an asset transfer agreement to divest its local customer support business. The division is sold to a Russian company owned by former operational managers of Ericsson´s Russian subsidiary.

The transaction includes a transfer of approximately 40 Ericsson employees and certain assets and contracts related to the business. The customer support business is a local business engagement that does not involve the export of hardware, software, or related services to mobile operators in Russia. Following Russia’s invasion of Ukraine, Ericsson announced the suspension of operations and deliveries to customers in Russia and an orderly wind-down following applicable sanctions.

Approximately 400 employees in Russia have been notified of layoffs and have been leaving the company as operations have been discontinued. Going into 2023, Ericsson expects to have a small presence in Russia on a local basis. A legal entity owned by Ericsson will continue to be registered to complete the wind-down and fulfill legal, contractual, and administrative requirements.

Separately, Ericsson announced agreed with the US Department of Justice and Securities and Exchange Commission to extend the terms of an independent compliance monitor for one more year to June 2024. Ericsson agreed to a three-year compliance program in 2019 as part of a $1.1 billion settlement with US authorities to end a corruption investigation. The company admitted to shelling out millions in bribes and falsifying books between 2000 and 2016 in at least five countries.