The news follows the decision taken by the company in February 2022, to suspend all deliveries to customers in Russia.
This action comes in the light of recent events as part of the ongoing conflict between Russia and Ukraine, as well as European Union sanctions.
Ericsson says it is "engaging with customers and partners regarding the indefinite suspension of the affected business" and that it is focusing on the "safety and well-being of Ericsson employees in Russia and they will be placed on paid leave".
As a result of this decision, Ericsson has recorded a SEK 0.9 billion ($95.3 million) provision in its Q1 2022 results for impairment of assets and other exceptional costs. This provision will be recorded in 'Other Operating Expenses in Segment Networks' in its filing - approximately one third of this amount will impact cash flow.
Ericsson is not the only tech company to suspend business activities in Russia, earlier this month Intel suspended all business operations in Russia due to the country's ongoing war in Ukraine.
At the same time, Elena Bunina, CEO of Yandex, left the company in a protest against the country’s war on Ukraine.
According to the Yale Chief Executive Leadership Institute, some 600 companies have exited the country including software company Autodesk, Accenture, BlackRock, Comarch, Deutsche Telekom, JLL, KPMG, Netflix, Netscout, OneWeb, Roku and Teradata.
As well as those that have suspended services, including Adobe, Airbus, Akamai, Alphabet, Amazon, Apple, ARM, CBRE, Ciena, Cisco, Cogent Communications, Dell, DirecTV, Equinix, Honeywell, HP Enterprise, HP Inc, IBM, Intel, Juniper Networks, LG Electronics, Lumen, Meta, Nokia, Nvidia, Oracle, Panasonic, Qualcomm, Samsung, SAP, Sony, TikTok, Twitter and VMWare.
