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Nokia Announces Russia Departure Amid Mounting Problems for Country’s Telecommunications

Nokia Announces Russia Departure Amid Mounting Problems for Country’s Telecommunications

Finland’s telecommunications company Nokia announced Tuesday that it will withdraw from the Russian market amid the country’s ongoing invasion of Ukraine.

News of Nokia’s departure comes a day after Swedish rival Ericsson announced it was suspending Russian operations indefinitely.

Although Russia’s telecommunications market is exempt from Western sanctions on humanitarian grounds, the two companies say severing ties with Moscow was their only option.

“We simply do not see any prospects of continuing in the country under the current circumstances,” Nokia CEO Pekka Lundmark said in a statement. Interview with Reuters. The company employed nearly 2,000 people in Russia.

It is also believed that deteriorating Russian relations with Finland and Sweden, where Nokia and Ericsson are headquartered respectively, played a role in the companies’ decision. Tensions escalated between Moscow, Helsinki and Stockholm as the Scandinavian countries expressed their desire to join NATO.

The move deals another blow to the Russian telecom industry, just days after the Chinese telecoms company Huawei announced that it was in the process of furloughing its employees in Russia.

Huawei, the largest smartphone provider in China, has become increasingly influential in the Russian market in recent years, becoming the country Larger A supplier of telecom network equipment and recently established a 5G network of the largest operator in Russia, MTS.

Huawei’s decision to suspend Russian operations and halt the supply of network components was linked to fear of “secondary sanctions” from the United States. The White House has already warned that it will punish third parties that help Moscow evade sanctions.

The Russian newspaper Izvestia said that the exodus of telecommunications will occur Probably Disruptions and accidents cause a “significant increase”.

But experts believe Huawei will find a way to continue supplying Russia over the course of this month, either by using intermediaries in third countries or by transferring intellectual rights to its products to Russian companies.

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