The withdrawal will not change the outlook for the full year, the network equipment supplier said.
Stockholm Finnish network equipment manufacturer Nokia no longer wants to do business in Russia because of the Russian invasion of Ukraine. Nokia is withdrawing from the market, company CEO Pekka Lundmark told Reuters in an interview published on Tuesday. That is the only option. “We just don’t see an opportunity to continue in the country under the current circumstances,” Lundmark said.
This takes the group one step further than its Swedish competitor Ericsson, which has announced that it will suspend all activities in Russia indefinitely.
Because of the war in Ukraine, hundreds of foreign companies have already cut their ties with Russia. The market share of Nokia, as well as Ericsson, in Russia is significantly smaller than that of Chinese competitors Huawei and ZTE. The withdrawal will not change the outlook for the full year, Nokia said. However, a provision of around EUR 100 million will be required in the first quarter.
In addition, the Finns want to abandon their original plan to set up a joint venture with the Russian company Yadro for the construction of 4G and 5G sites. Around 2,000 employees are affected by the withdrawal. Some may be offered work in other regions.