Ericsson suspends business in Russia - Mobile World Live

Ericsson suspends business in Russia

11 APR 2022

Ericsson halted its operations in Russia as it seeks to comply with international sanctions imposed in the weeks after the country’s invasion of Ukraine.

The Sweden-headquartered equipment vendor noted it would record a SEK900 million ($95.5 million) provision in its Q1 earnings for impairment of assets and other exceptional costs.

In a brief statement, Ericsson explained it “will now suspend its affected business with customers in Russia indefinitely” in light of recent events and European Union sanctions.

The vendor added it is in talks with customers and partners, and placed employees in Russia on paid leave.

Ericsson has worked with a number of Russian mobile operators over the years. It recently entered into a strategic partnership with MTS to develop private 5G networks, and has also collaborated with the operator on testing and deploying the next-generation technology.

Rival European vendor Nokia announced in early March it had suspended its deliveries to Russia for the time being.

Later in the same month, Nokia was forced to defend itself against claims by The New York Times that it played a role in SORM, Russia’s lawful intercept system.

Nokia insisted it does not manufacture, install or service SORM equipment or systems. “Any suggestions that we do, are incorrect”, it stated.

China’s Huawei continues to do business in Russia.

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Anne Morris

Anne Morris is a freelance journalist and contributes news and analysis to Mobile World Live.

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