Nokia is exiting the Russian market.
“We just simply do not see any possibilities to continue in the country under the current circumstances,” Pekka Lundmark, Nokia CEO, told Reuters.
The exit doesn’t mean the company will abandon existing networks in the country. In a press release, the company says they are applying for licenses that will allow it to maintain networks under current sanctions.
“This is the most responsible course of action for Nokia to take as we exit the Russian market,” the company says.
It’s the next step in a series of actions. Over the past weeks, the telecom equipment maker stopped deliveries and new businesses.
Nokia notes the decision will likely not impact their 2022 outlook. The company says Russia made up less than two percent of 2021 net sales, and strong demand in other regions will make up for the exit.
The company did not say when they would complete the exit.
Nokia is taking a more significant step than its competitor Ericsson. The company said it’s indefinitely suspending business in Russia and putting its 600 employees on paid leave. Ericsson is not exiting the Russian market entirely like Nokia at this time.
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