Ericsson will cease business activities in Russia in the coming months

MOSCOW:

Ericsson said on Monday it would be phasing out its business operations in Russia over the next few months as the Swedish telecoms maker fulfills its obligations to customers.

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

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

Dell Technologies Inc announced on Saturday that it had ceased all operations in Russia after closing its offices in mid-August.

Ericsson, which sent its employees on paid leave earlier this year, also recorded a provision of 900 million crowns ($95 million) 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 withdraw from Russia, impacting around 2,000 employees. The Finnish company did not respond to a request for comment on when the release will be complete.

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