The exit of Nokia, Ericsson, and Logitech from Russia will result in problems for MTS, Tele2, and Beeline operators that developed their networks using the equipment of these companies.
Following the Russian invasion of Ukraine, Russia faced a list of sanctions. Besides, many companies announced their decision to quit the Russian market. Back in April, Finland’s Nokia Oyj (NYSE: NOK) suspended deliveries, stopped new business and started moving its limited R&D activities out of Russia. Swedish multinational networking and telecommunications company Ericsson (NASDAQ: ERIC) did the same. Switzerland-based Logitech International SA (NASDAQ: LOGI) also suspended its operations in Russia back in March. Now, Nokia, Ericsson, Logitech, as well as other Western tech producers, are planning to completely exit buiness in Russia before the end of this year.
Nokia spokesperson commented:
“By the end of the year, the vast majority of our employees in Russia will have moved on from Nokia, and we have vacated all of our offices. We will retain a formal presence in the country until the legal closure is completed.”
Before the war started, Nokia had around 2,000 employees in Russia.
The company also noted earlier that exit from the Russian market would not affect its revenue. Last year, Russia accounted for less than 2% of Nokia’s net sales. Considering the strong demand for its products in other regions, the company does not expect this decision to impact its ability to achieve the 2022 targets.
Speaking of Ericsson which employs 565 people in Russia, the company suspended operations in the country back in March indefinitely. And now, the company is planning to completely shut down by the end of the year. All employees will be fired, including those who support equipment on networks of communication operators.
The exit of Nokia, Ericsson, and Logitech from Russia will result in problems for MTS, Tele2, and Beeline operators that developed their networks using the equipment of these companies.
Nokia and Ericsson Join Other Companies Pulling Back from Russia
The list of companies that decided to leave Russia following its invasion of Ukraine is constantly refilled. Representatives of different industries have come with a sharp response to the war, and for some companies, it has a high cost. For example, chains like McDonald’s, PepsiCo, and Shell, have been building relationships with the country over decades and faced with untangling complicated deals. For Shell, its decision to leave Russia would cost $4 billion to $5 billion in the first quarter alone.
Over 1,000 companies have already curtailed operations in Russia. Among those who stopped sales or other services in Russia are Adobe, Amazon, Epic Games, PayPal, AirBnb, Sony, Spotify, Ubisoft, Snap, Nvidia, Disney, Electronic Arts, and much more.
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Source: https://www.coinspeaker.com/nokia-ericsson-exit-russia/