Hard on the heels of Ericsson suspending all business in Russia, Nokia has announced that it will exit the market.
The Finnish vendor stated that since the early days of Russia’s invasion of Ukraine, it been clear that “continuing our presence in Russia would not be possible.” Accordingly, over the past few weeks Nokia has have suspended deliveries and not signed any new agreements, and is now moving its R&D activities out of Russia.
The vendor said that it would aim to provide the necessary support to maintain networks within Russia, noting that Western governments have expressed concerns about the risk of critical telecommunication network infrastructure in Russia failing - both for humanitarian reasons, and for ensuring the continued flow of information and access to the internet which provides outside perspectives to the Russian people. In addition, Nokia confirmed that it is applying for licences that will allow it to provide this support in compliance with current sanctions.
The vendor claimed that the exit would have a minimal impact on its finances, with Russia accounting for less than 2% of its net sales in 2021. Combined with strong demand from other regions, Nokia expects to meet its previously stated 2022 outlook, although it noted that exiting Russia will lead to a Q1 provision of approximately €100m.