Following Russia’s invasion in Ukraine, Ericsson announced the suspension of operations and deliveries to customers in Russia and the orderly wind-down in accordance with EU sanctions. Exiting infrastructure business and operations is highly complex and will be carried out in an orderly manner. Please find below a Q&A which will be updated as needed.
What is the latest update regarding Ericsson’s orderly withdrawal from Russia? (December 15, 2022)
On December 15 2022, Ericsson announced the divestment of its local customer support business in Russia, which has been acquired by a Russian company. The transaction includes certain assets and contracts related to the business, and a transfer of approximately 40 Ericsson employees.
There have been reports of a lawsuit against Ericsson in Russia. Can you give more detail? (December 1, 2022)
As previously announced, we are winding down all customer engagements in Russia in accordance with applicable sanctions. We aim to complete this process by the end of 2022. Ericsson is aware of the legal proceedings initiated by Tele2. As this is an ongoing legal matter, we are unable to comment further at this stage.
When will Ericsson leave Russia? (update Feb 10, 2023)
Ericsson completed winding down its customer engagements by end of 2022.
400 employees in Russia have been notified of layoffs and left Ericsson.
In 2023, Ericsson will continue having a legal entity with few employees to fulfill legal and administrative requirements.
Why have you applied for exemptions from sanctions?
Following Russia’s invasion of Ukraine, and the EU response to adopt unprecedented sanctions, Ericsson suspended its deliveries into Russia. Winding down Ericsson’s operations is complex and it takes time; telecommunication networks are part of the critical infrastructure in any society.
To ensure that our exit from this critical infrastructure is done responsibly and in accordance with sanctions, we have engaged with relevant authorities. As part of this, and to allow us to deliver technical assistance and software for civilian public telecommunication networks, the Swedish authority granted us time-limited exemptions from the sanctions.
These exemptions are limited to supporting civilian mobile networks and will expire by year-end.
The exemptions will allow Ericsson to wind down its business in Russia, take care of the safety and interests of our employees in Russia and to close outstanding contractual obligations.
Why didn't you make public the exemptions you obtained for exporting to Russia?
Ericsson has been clear that the company would continue to engage with the authorities as we wind down our operations in Russia in a safe, orderly way.
Under what circumstances does Ericsson need to apply for licenses with the Inspectorate for Strategic Products (ISP)?
A wide range of products, software, technologies, and services which are for civilian use are also subject to export controls as “dual-use” goods. An export license can be required for export of such goods outside the EU and countries such as the U.S., Australia, Japan, Canada, New Zealand, Norway, and Switzerland. Such controls are implemented by the Inspectorate of Strategic Products (ISP), a Swedish government authority. For exports of “dual use” goods to Russia, the granting of an export license confirms the exported equipment is for civil use.
Do you do business in Belarus?
Ericsson does not have employees, presence, or ongoing customer engagements in Belarus.
We do own a 49% stake in Ericsson Nikola Tesla (ETK), an associated Croatian company. ETK has business engagements in Belarus and has been granted time-limited exemptions from the Croatian authorities. This company is listed on the Zagreb stock exchange and as a minority owner Ericsson cannot comment on ETK’s behalf.
Certain of our other subsidiaries terminate messaging and voice traffic for global customers in Belarus.