Wednesday, August 10, 2022

Nokia announces exit from Russian market

Telecom equipment maker Nokia has on Tuesday confirmed it exit from the Russian market following following invasion in Ukraine.

The move follows several sanctions imposed by Western countries after the February 24th invasion in Ukraine that was followed by exits by top global companies.

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In a statement, Nokia noted that its presence in Russia is impossible following the invasion that has forced them to suspend deliveries and transfer there Research and Development activities from Russia.

“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. We can now announce we will exit the Russian market. During this process our priority continues to be the safety and wellbeing of our employees.” Said Nokia

Concerns have also been raised over the safety of telecommunication equipment in Russia by Western Countries even though such companies have been urged to provide services that will in turn provide people with the relevant information at this time.

It is because of such necessities that Nokia has promised to continue providing support to maintain the networks in line with the ongoing sanctions.

“Regarding the financial impact of the decision, Russia accounted for less than 2% of our net sales in 2021. Considering the strong demand we see in other regions – we do not expect this decision to impact our ability to achieve our 2022 outlook provided in the Nokia financial report for Q4 and full year 2021 issued on 3 February 2022. We expect this decision to lead to a provision in Q1 of approximately €100m which will impact our reported but not comparable financials.” Said Nokia

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