Ericsson said it intends to end all customer engagement in Russia by the end of the year and going into 2023, it expects to have a small presence in Russia on a local basis.
Ericsson continues to make attempts to exit Russia, the most recent being the sale of its Russian customer support company.
Ericsson, which is conducting its Capital Markets Day today, said that its wholly owned Russian subsidiary has entered into an asset transfer agreement with a Russian firm owned by Ericsson’s Russian subsidiary’s former operational management.
The transaction involves the transfer of around 40 Ericsson employees, as well as certain commercial assets and contracts.
According to Ericsson, the customer support business is a local commercial activity that does not entail the export of hardware, software, or related services to Russian mobile operators.
Soon after Russia’s invasion of Ukraine on February 24, the GSMA pulled Russian companies out of Mobile World Congress (MWC) in Barcelona, where they had been scheduled to exhibit on February 28-March 3 as part of the Russian pavilion.
Around that time, companies like Ericsson announced plans to cut ties in Russia. Ericsson suspended deliveries to customers in Russia and in April, citing recent events and European Union sanctions, it announced that it was suspending business operations in Russia indefinitely.
About 400 Ericsson employees in Russia were notified of layoffs and have been on their way out as operations were discontinued, according to the Swedish company.
Legal actions in Moscow by mobile operator Tele2, which accused Ericsson of refusing to follow equipment supply agreements, have further complicated its exit from Russia. Last month, Tele2 told Reuters that the majority of the unfulfilled orders were placed before the penalties were imposed.
On a page dedicated to Ericsson’s operations in Russia, the company notes that it is aware of the legal procedures started by Tele2, but that “we are unable to comment further at this moment” due to the ongoing legal proceedings.
The corporation also stated that telecom networks are vital infrastructure in any society and that departing must be done carefully. The Swedish authorities granted Ericsson temporary sanctions waivers so that company may provide technical help and software to civilians’ public telecom networks.
Ericsson stated that it wants to stop all customer involvement in Russia by the end of the year and that it expects to have a modest local presence in Russia by 2023. Ericsson’s legal entity will remain registered in order to complete the wind-down and meet legal, contractual, and administrative requirements.