Ericsson pulls out of Russia but still offers software support

Ericsson Russia

Since the outbreak of the Russia – Ukraine conflict, several companies have been pulling out of Russia. These are mostly American and European companies. These companies do not want to be on the wrong side of their governments. Thus, should they have any dealings in Russia, they take time to explain their presence in Russia. According to a recent report, Ericsson, a Swedish company is still available in Russia. However, Reuters reveal that since the start of the Russia – Ukraine conflict, the company has not sold any telecom equipment to mobile operators.

Ericsson Russia

Ericsson no longer ships hardware to Russia

However, a report out of Sweden claims that the company is still exporting hardware to Russia. After the report hit the web, shares in the company were down 4.6% in early trade. Ericsson suspended operations in Russia in April. In August, the company reveals that it would exit the country in the next few months. It recorded a charge of 900 million kronor (about $80 million) and cut 400 jobs in the country as it winds up operations.

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“In order to comply with sanctions, we provide software and technical assistance. This is for products shipped prior to the conflict. It enables us to meet our contractual obligations,” a spokesman said.

“When the sanctions were announced, we stopped shipping to Russian customers,” he said.

Ericsson’s main rival, Nokia also has plans to exit the Russia market. The company has already announced that it will withdraw from Russia by the end of the year. However, it claims it has some maintenance of critical networks to meet its contractual and humanitarian obligations.

Sveriges Radio Ekot reports that Ericsson has applied to the Swedish Strategic Products Inspection Agency for 12 sanctions-exempt licenses and has been granted seven. The Swedish authorities’ sanctions list includes telecommunications-related software and technology

Ericsson said the licenses are for software and technical assistance.

“Even if mobile phones are for civilian use, export licenses are required. This is mainly because of the advanced encryption technology embedded in our products. It applies to all countries,” he said.

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