The Ericsson logo is seen at its headquarters in Stockholm, Sweden on June 14, 2018. REUTERS/Olof Swahenberg/File Photo
STOCKHOLM/MOSCOW, Aug 29 (Reuters) – Ericsson ( ERICb.ST ) said on Monday it would gradually scale back business activities in Russia in the coming months, while Finnish rival Nokia ( NOKIA.HE ) said it planned to close several. At the end of the year, the Russian business.
While Ericsson suspended business in Russia indefinitely in April, Nokia said it would go a step further and leave the country entirely. Read more
“By the end of the year, most of our employees in Russia will move from Nokia and leave all of our offices,” a Nokia spokesman said on Monday.
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Dell Technologies Inc ( DELL.N ) has ceased all Russian operations after closing its offices in mid-August. Read more
Ericsson, which put employees on paid leave earlier this year, recorded a 900 million crown ($95 million) charge in the first quarter for asset impairment and other special costs related to the move.
It has about 400 employees in Russia and said it would provide financial assistance to those affected.
Nokia, which had about 2,000 employees in Russia, said its remaining operations in the country were related to the maintenance of critical networks to meet its contractual and humanitarian obligations.
As Ericsson and Nokia pull out of Russia entirely, the country’s mobile operators MTS and Tele2 ( TEL2b.ST ) will become dependent on Chinese companies such as Huawei ( HWT.UL ) and ZTE ( 000063.SZ ).
MTS declined to comment. Tele2 did not immediately respond to requests for comment.
Russian daily Kommersant first reported Ericsson’s exit and said some of its support staff would be transferred to a new company in Russia to be set up by senior managers. Erickson did not comment on the new company.
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Reporting by Supantha Mukherjee in Stockholm and Alexander Marrow in Moscow; Editing by Stine Jacobsen and Jan Harvey
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