The telecommunications company Nokia has announced that it has withdrawn from the Russian market. Nokia's move follows rival Ericsson, which on Monday said it had suspended its business in Russia indefinitely.
The impact of the invasion of Ukraine on February 24 last, made hundreds of foreign companies withdrew in Russia after Western sanctions were applied.
Several sectors, including telecommunications, are indeed exempt from sanctions on humanitarian grounds. Even so, Nokia said that a decision to leave Russia was their only option.
"We just don't see the possibility of continuing in that country under the current circumstances," Nokia CEO Pekka Lundmark said in an interview with Reuters.
He added that Nokia will continue to support its customers even after they leave Russia. And it is not known how long Nokia will withdraw from Russia.
In a statement, Nokia revealed that the suspension of shipments, the suspension of new business, and the transfer of limited research and development, had been suspended from Russia over the past few weeks.
Nokia is also applying for the relevant licenses to support their customers, which complies with the current sanctions.
Nokia does not expect this decision to have an impact on its 2022 outlook. However, this decision will lead to a provision in the first quarter of around USD 109 million.
Russia is known to be currently at odds with Finland and Sweden, the home countries of Nokia and Ericsson, over their interest in joining the NATO military alliance.
Russia has also been pushing companies to start building networks, using only Russian equipment, and is trying to persuade Nokia and Ericsson to set up factories in the country.
Lundmark said Nokia would not implement plans announced in November to set up a joint venture with Russia's YADRO to build 4G and 5G telecommunications base stations.
He further said that Nokia's decision to leave Russia will affect around 2,000 workers, and some of them may be offered jobs in other countries.
"A lot has to change before it's possible to reconsider doing business in this country," Lundmark said.