Serba Condition Is Not Pasti, The Exodus Of The Western Technology Company From Russia Makin Marak

Nokia decided to leave Russia. (photo: doc. pixabay)

JAKARTA - Western technology companies, including Ericsson and Nokia, announced plans to leave Russia completely on Monday, August 29. The move follows Dell last week, accelerating its withdrawal of operations from the country.

Ericsson said he would gradually withdraw from Russia for the coming months, while his rival from Finland, Nokia, said it also plans to get out of business in Russia by the end of this year.

Swiss-based Logitech International also said it would halt its remaining activities in Russia, after suspending its operations in March.

More western companies are selling or withdrawing from their Russian businesses after initially halting operations after Moscow sent tens of thousands of troops to Ukraine on February 24.

"This process requires careful planning given the ongoing political challenges," said Paolo Pescatore, analyst at PP Insight.

"We are now seeing the fruits of the months-long exit plan. They are all following suit," Pescatore said, as quoted by Reuters.

Ericsson himself suspended his business in Russia indefinitely in April, while Nokia went further and said it would withdraw completely from the country.

"By the end of the year, most of our employees in Russia will be moved from Nokia, and we have vacated all of our offices," a Nokia spokesperson said last Monday. "We will maintain official presence in the country until the closing is finalized."

Ericsson, who placed his employees on paid leave earlier this year, also recorded a provision of 900 million crowns (Rp 1.4 trillion) in the first quarter for a decrease in asset value and other extraordinary costs related to the transfer.

They have about 400 employees in Russia and say they will provide financial support to those affected.

Nokia, which has about 2,000 employees in Russia, said its remaining activities in the country are only linked to limited maintenance of critical networks to comply with contract and humanitarian obligations.

When Ericsson and Nokia leave Russia, the country's cellular operators MTS and Tele2 will become more dependent on Chinese companies such as Huawei and ZTE. However, MTS and Tele2 declined to comment on this report.

Russian newspaper Kommersant first reported Ericsson's exit and said some of its supporting staff would move to a new company to be founded by the top manager in Russia. Ericsson did not comment on the new company.

Logitech International also said on Monday that it would halt its remaining operations in Russia due to its "uncertain environment", as well as join other major technology and telecommunications businesses to announce plans to come out completely.

In March, we communicated that Logitech would stop shipping to Russia, Logitech said in a statement. "We have monitored the situation closely and unfortunately, the circumstances do not allow us to continue doing business as before."