Nokia to quit Russian market

Finland-based telecommunications giant Nokia on Tuesday announced to exit the Russian market following Russia´s attack on Ukraine, said the company in a press release.

It has been clear since the early days of the invasion of Ukraine that continuing Nokia´s presence in Russia would not be possible, the company said.

“Over the last weeks we have suspended deliveries, stopped new business and are moving our limited R&D activities out of Russia,” said the press release, adding that during the exiting process priority will be given to the safety and wellbeing of its employees.

For humanitarian reasons, Western governments have expressed concerns about the risk of critical telecommunication network infrastructure in Russia failing. They have also emphasized the importance of ensuring the continued flow of information and access to the internet which provides outside perspectives to the Russian people.

“Therefore, as we exit we will aim to provide the necessary support to maintain the networks and are applying for the relevant licenses to enable this support in compliance with current sanctions,” the press release added.

This is the most responsible course of action for Nokia to take as it exits the Russian market.

Regarding the financial impact of the decision, Russia accounted for less than 2% of Nokia´s net sales in 2021.

Considering the strong demand Nokia sees in other regions and it does not expect this decision to impact Nokia´s ability to achieve 2022 outlook provided in the financial report for Q4 and full year 2021 issued on 3 February 2022.

It expects this decision to lead to a provision in Q1 of about €100m which will impact Nokia´s reported but not comparable financials.