Ericsson to wind down business activities in Russia over coming months

By Thomson Reuters Aug 29, 2022 | 3:28 AM

STOCKHOLM/MOSCOW (Reuters) -Ericsson said on Monday it will gradually wind down business activities in Russia over the coming months as the Swedish telecoms equipment maker completes its obligations to customers.

The company, which suspended its business in Russia indefinitely in April, said it has about 400 employees in Russia and would provide financial support to affected employees.

More and more Western companies are selling their Russian businesses after announcing suspensions of operations in the weeks after Moscow sent tens of thousands of troops into Ukraine on Feb. 24.

Dell Technologies Inc said on Saturday it had ceased all Russian operations after closing its offices in mid-August.

Ericsson, which had sent its employees on paid leave earlier this year, also recorded a 900 million crown ($95 million) provision in the first quarter for impairment of assets and other exceptional costs related to the move.

Its Finnish rival Nokia had already announced its decision to pull out of Russia, impacting about 2,000 employees. The Finnish company did not respond to a request for comment on when the exit will complete.

Russian daily Kommersant first reported Ericsson’s exit and said some of its support staff would move to a new firm that will be established by top managers in Russia. Ericsson did not comment on the new firm.

(Reporting by Supantha Mukherjee in Stockholm and Alexander Marrow in Moscow; Editing by Stine Jacobsen and Jan Harvey)