Ericsson Halts Business in Russia for Now, Puts Staff on Leave
- Telecommunications networks maker books $95 million hit
- Russia, Ukraine account for less than 2% of Ericsson’s sales
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Ericsson AB said it had suspended business with customers in Russia “indefinitely,” extending a halt from February that was originally billed as temporary, following sanctions imposed as a result of Russia’s war in Ukraine.
Roughly 600 staff in Russia will be placed on paid leave, said the Swedish telecommunication equipment maker, major supplier to Russia’s largest operator MTS and fourth largest operator Tele2. It’s also booking a provision of 0.9 billion kronor ($95 million) in the first quarter for impairment of assets and other exceptional costs. Roughly a third of that impacts cash flow.