Many Western companies have already withdrawn from the Russian market. There are various reasons behind such decisions. We mean that some are leaving Russia because their governments have asked to act as such, while others cannot continue their normal business due to sanctions. The next group of companies leaving Putin’s country includes Ericsson and Nokia. As Reuters reported earlier today, these companies will gradually reduce their trading activities in Russia in the next few months.
Read more: Russia will skip 5G and develop its own 6G network
Last April, Ericsson announced that it would suspend operations in Russia indefinitely. As for Nokia, it has taken a tougher decision saying that it will be out of the country entirely.
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“By the end of the year, the vast majority of our employees in Russia will have moved from Nokia, and we have vacated all of our offices,” a Nokia spokesperson said on Monday. “We will maintain an official presence in the country until the legal lockdown is completed.”
Nokia and Ericsson announced their decisions earlier
Ericsson already put Russian employees on paid leave earlier this year. It provided about $95 million in the first quarter for asset impairment and other special costs related to the move. This company has about 400 employees in Russia. And issued a statement saying that it will provide financial support to those affected.
In contrast, Nokia has about 2,000 employees in Russia. The company said its remaining activities in Russia are related to limited maintenance of critical networks to meet its contractual and humanitarian obligations.
Kommersant first reported Ericsson’s exit and stated that some of its support staff would be transferred to a new company founded by Russian executives. Ericsson has not commented on this.
Once Ericsson and Nokia fully withdraw from Russia, the country’s mobile operators, MTS and Tele2, will rely more on Chinese companies such as Huawei and ZTE. The two Russian carriers also did not comment.
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