Adds output, background details
STOCKHOLM/MOSCOW, August 29 (Reuters) – Ericsson ERICb.ST said on Monday that it would phase out its business activities in Russia over the next few months as the Swedish telecoms equipment maker fulfills its obligations to its 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 Feb. 24.
Dell Technologies Inc. DELL.N said on Saturday it had ceased all Russian operations after its offices closed 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 NOKIA.HE 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 venture.
FACTBOX-Companies sell their businesses in Russia
(Reporting by Supantha Mukherjee in Stockholm and Alexander Marrow in Moscow; Editing by Stine Jacobsen and Jan Harvey)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.