Nokia exits Russian market following Ericsson’s lead
Nokia has announced it will be going one step further than its rival Ericsson and will fully pull out of the Russian market.
Over the last few weeks, Nokia has suspended deliveries, stopped new business and moved limited R&D activities out of Russia.
However, the telecom equipment maker said in a statement this morning: “For humanitarian reasons, Western governments have expressed concerns about the risk of critical telecommunication network infrastructure in Russia failing.”
“They have also emphasised 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.”
Regarding the financial impact of the decision, Russia accounted for less than two per cent of its net sales in 2021, and Nokia said it did not expect this decision to impact its 2022 outlook.
However, Nokia said it expected this decision to lead to a provision in Q1 of approximately €100m
The decision to leave Russia will affect about 2,000 workers, CEO Pekka Lundmark told Reuters. Some
Hundreds of firms have severed ties with Russia following its invasion of Ukraine at the end of February.