According to the latest report, Ericsson said on Monday that it will gradually reduce its business activities in Russia in the next few months. Ericsson had already announced in April that it would suspend operations in Russia indefinitely, but rival Nokia went further, saying it would exit the country entirely.
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” By the end of the year, the vast majority of our employees in Russia will be leaving Nokia, and we have vacated all offices, ” a Nokia spokesman said on Monday. ” We will maintain a presence in the country until the legal shutdown is complete.”
Ericsson, which put Russian employees on paid leave earlier this year, made a provision of about $95 million in the first quarter for asset impairments and other special costs related to the move, which The company, which has about 400 employees in Russia, said it would provide financial support to those affected.
Nokia, which has about 2,000 employees in Russia, said its remaining activities in Russia were related to limited maintenance of critical networks to meet its contractual and humanitarian obligations. The Russian media Kommersant first reported Ericsson’s exit and said that some of its support staff would be transferred to a new company established by Russian executives. Ericsson did not comment on the new company.
Reuters said that with Ericsson and Nokia fully withdrawing from Russia, the country’s mobile operators MTS and Tele2 will rely on more on Chinese companies such as Huawei and ZTE.
