Finland — Telecom equipment maker Nokia announced today the company will exit the Russian market in response to that country’s invasion of Ukraine.
“It has been clear for Nokia since the early days of the invasion of Ukraine that continuing our presence in Russia would not be possible. Over the last weeks we have suspended deliveries, stopped new business and are moving our limited R&D activities out of Russia,” reads a statement from the Finnish company.
“Western governments have expressed concerns about the risk of critical telecommunication network infrastructure in Russia failing. They have also emphasized the importance of ensuring the continued flow of information and access to the internet which provides outside perspectives to the Russian people,” the statement adds.
“Therefore, as we exit we will aim to provide the necessary support to maintain the networks and are applying for the relevant licenses to enable this support in compliance with current sanctions,” the statement says, calling this “the most responsible course of action for Nokia to take as we exit the Russian market.”
Nokia says its decision will have no impact on the company’s financial outlook. Russia accounted for less than 2% of Nokia’s net sales in 2021, according to the statement.
The company says its decision is expected to lead to a provision in Q1 2022 of approximately €100m (about CAD$137 million), “which will impact our reported but not comparable financials.”
This comes a day after Swedish competitor Ericsson announced it is suspending business in Russia indefinitely.
