Nokia announced it would refuse new business in Iran during 2019 due to the reintroduction of sanctions by the US government, restricting activity to completing existing contractual obligations.
In a regulatory filing made alongside its annual report, the vendor said it had reviewed its business in the country after the US withdrew from an international agreement to relax sanctions on Iran in 2018.
Despite being a Europe-based company, and the European Union standing by the original deal on trading in Iran, Nokia said it would be “quite challenging to reconcile the opposing foreign policy regimes of the US and the EU”.
“The changed US foreign and economic sanctions policy necessitates a reassessment of our operations in Iran which may require us to significantly reduce our business and maintain pre-existing contractual commitments in full alignment with applicable economic sanctions,” it added.
In 2018 the vendor provided a range of equipment to mobile operators MTN Irancell and Mobile Communications Company of Iran. It also has a contract with fixed provider HiWeb.
Limited fixed services were provided to regional players, either directly or through local contractors. It also sold wireless kit in the country through subsidiary RFS.
During 2018, Nokia booked net sales of almost €55 million from activities in Iran. Profit is not reported on a market-by-market basis. The company said none of its activities in the country over the year involved affiliates or any members of staff from the US.Subscribe to our daily newsletter Back