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Ericsson Suspends Business in Russia

Ericsson Suspends Business in Russia

Monday, 11 April, 2022 - 10:30
Ericsson logo is seen at its headquarters in Stockholm, Sweden June 14, 2018. REUTERS/Olof Swahnberg/File Photo

Ericsson is suspending its business in Russia indefinitely and has put employees on paid leave, six weeks after the Swedish telecom equipment maker started a review of the impact of Western sanctions on its operations.

The company said on Monday it would record a 900 million crown ($95 million) provision in the first quarter for impairment of assets and other exceptional costs related to the move.

Ericsson has about 600 employees in Russia, a spokesperson said.

Hundreds of Western companies have either withdrawn or suspended operations in Russia since the country invaded Ukraine in February while Western governments have imposed sanctions.

Russian President Vladimir Putin sent his troops into Ukraine on what he calls a "special military operation" to demilitarize and "denazify" Ukraine. Ukraine and the West say Putin launched an unprovoked war of aggression.

Ericsson had paused deliveries to customers in Russia in February, and rival Nokia did so in early March.

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