Nokia to Exit Russia and Book $108.9 Million Provision
April 12 2022 - 01:56AM
Dow Jones News
By Dominic Chopping
Finnish telecommunications company Nokia Corp. said Tuesday that
it will exit the Russian market and book a 100 million-euro ($108.9
million) provision in the first quarter of 2022.
Shortly after Russia invaded Ukraine, Nokia said it had paused
deliveries to the country but it has now moved to completely exit
Russia, echoing a similar move by Nordic rival Ericsson AB.
Nokia operates from four locations in Russia, a main office and
separate training center in Moscow and offices in Saint Petersburg
and Voronezh, but its business there only accounted for around 2%
of group sales in 2021 so the company still expects to achieve its
previous 2022 guidance.
"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," it said.
"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," the
company said.
Nokia said that for humanitarian reasons it will aim to maintain
networks in Russia to ensure critical telecommunication network
infrastructure and the continued flow of information for the
Russian people.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
April 12, 2022 02:41 ET (06:41 GMT)
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