Nokia will pull out of the Russian market, meaning layoffs for the some 2,000 staff the Finnish telecoms provider has in the country, the company said Tuesday.
The announcement comes a day after rival Ericsson decided to suspend its activities in the country indefinitely.
Hundreds of mainly Western companies have announced the suspension of their activities or their departure from Russia since the invasion of Ukraine on February 24 and the severe sanctions imposed upon Moscow.
While certain industries, notably telecommunications, have been exempted from some restrictions due to humanitarian or related concerns, Nokia stated that leaving Russia was the only alternative.
“We just simply do not see any possibilities to continue in the country under the current circumstances,” CEO Pekka Lundmark said during an interview.
Nokia would continue to serve customers during its exit, he said, adding that it was impossible to estimate how long the process would take at this point. Nokia stated in a statement that it is applying for the necessary licenses to help customers comply with current sanctions.
Both Nokia and Ericsson sold in the low single digits in Russia, where Chinese businesses like Huawei (HWT.UL) and ZTE (000063.SZ) have a larger market share.
Nokia expects this decision to have no impact on its 2022 projection, but it will result in a provision of around 100 million euros ($109 million) in the first quarter.
(With inputs from agencies)
