Ericsson puts Russian business on ice

Ericsson puts Russian business on ice

Ericsson has confirmed that it will indefinitely suspend its business in Russia.

The Swedish vendor stopped deliveries to customers in Russia in late February, following the country’s invasion of Ukraine. It has now released a statement saying: “In the light of recent events and of European Union sanctions, the company will now suspend its affected business with customers in Russia indefinitely.”

The vendor added that it would engage with customers and partners over the suspension, noting that its priority is the safety and well-being of Ericsson employees in Russia – all of whom will be placed on paid leave.

Ericsson noted that this would result in it recording a SEK 0.9 b. provision (US$95 million) provision for Q1 2022, for impairment of assets and other exceptional costs resulting from the suspension of its Russian business, with no staff redundancy cost included.

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