Ericsson Suspends Business in Russia
April 13, 2022
late February, Ericsson suspended all deliveries to customers in
Russia. In the light of recent events and of European Union
sanctions, the company will now suspend its affected business
with customers in Russia indefinitely. Ericsson is engaging with
customers and partners regarding the indefinite suspension of
the affected business. The priority is to focus on the safety
and well-being of Ericsson employees in Russia and they will be
placed on paid leave.
As a consequence, Ericsson records a SEK 0.9 b. provision in first quarter 2022 for impairment of assets and other exceptional costs. No staff redundancy cost is included. The provision will be recorded in Other Operating Expenses in Segment Networks. Around one third of this amount will impact cashflow.