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Ericsson suspends business in Russia, puts staff on paid leave

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Ericsson has about 600 employees in Russia.

STOCKHOLM - Ericsson is suspending its business in Russia indefinitely and has put employees on paid leave, six weeks after the Swedish telecom equipment maker started a review of the impact of Western sanctions on its operations.

Russian President Vladimir Putin sent his troops into Ukraine on what he calls a "special military operation" to demilitarise and "denazify" Ukraine. Ukraine and the West say Putin launched an unprovoked war of aggression. "Move was inevitable following a swathe of sanctions," said Paolo Pescatore, an analyst at PP Foresight. "It will be a huge blow to both Ericsson and Nokia as they will not be paid for their networks."

Ericsson does not have any manufacturing in Russia and its manufacturing hubs in Europe are in Estonia and Poland.

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Ericsson suspends all business in RussiaSTOCKHOLM : Swedish telecom equipment maker Ericsson said on Monday it was suspending its business in Russia indefinitely. 'In the light of recent events and of European Union sanctions, the company will now suspend its affected business with customers in Russia indefinitely,' it said in a statement.
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