Ericsson halts business in Russia, counts $95m cost
The Swedish telecoms giant, Ericsson has put its Russian business on hold indefinitely following a fresh review of the impact of the Russian war on the company’s business. The company said on Monday it would record a $95 million cost on provision in the first quarter for impairment of assets and other exceptional costs related to the move.
Ericsson has also put its employees in Russia on paid leave. According to reports monitored on reuters, the “Move was inevitable following a swathe of sanctions,” said Paolo Pescatore, an analyst at PP Insights. “It will be a huge blow to both Ericsson and Nokia as they will not be paid for their networks.”
Ericsson, which has about 600 employees in Russia, stopped deliveries to customers in Russia in February in response to the invasion of Ukraine by Russia.
Though the suspension of operations will hurt Ericsson’s future plans in the country as it looks forward to being granted an operator’s license, it felt obliged to take the action in the overall business interest.
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