Nokia Exits Russian Market

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The Finnish telecom company Nokia is leaving the Russian market because of the war in Ukraine. The company announced this in a press release on Tuesday. As a result of the decision, 2,000 employees may lose their jobs.

 

“Since the early days of the invasion of Ukraine, it has been clear to Nokia that the continuation of our presence in Russia would not be possible,” it said. In recent weeks, the company has therefore already decided to suspend deliveries, stop new activities and move certain activities, such as research and development, out of Russia. “We can now announce that we will be leaving the Russian market.”

Nokia has about 2,000 employees in Russia, about 200 of whom are employed in research and development. “Unfortunately, it is inevitable that we will have to cut jobs. We will, however, offer transfers for some positions outside of Russia,” said a spokesperson for the Finnish group.

Western governments had expressed concern for humanitarian reasons about the risk of the telecommunications network in Russia failing. However, the flow of information and access to the internet must remain guaranteed. Therefore, Nokia will try to maintain the networks and is requesting the necessary permits to make this possible, following the current Western sanctions.

In financial terms, the withdrawal from Russia need not have major consequences. The country accounted for 2 percent of Nokia’s net sales in 2021. “Given strong demand from other regions, we do not expect this decision to affect our 2022 outlook,” the Finnish company said.

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