Nokia announced on Tuesday that it would exit the Russian market and book a $109 million provision in the first quarter of 2022. The Finnish telecom equipment company had previously suspended deliveries to Russia in early March but only just announced its plans to completely exit the country.
“It has been clear for Nokia since the early days of the invasion of Ukraine that continuing our presence in Russia would not be possible,” the company announced in a statement.
Nokia (ticker: NOK) went on to clarify that Russia accounted for less than 2% of its sales in 2021 and that it doesn’t expect its decision to impact its outlook for 2022. In February, the company released guidance indicating that revenue this year is expected to be € 22.6 billion to €23.8 billion, an increase from €22.2 billion in 2021.
On Tuesday, Nokia’s American depository receipts were down 0.6% in premarket trading.
The company’s announcement comes only a day after Ericsson (ticker: ERIC) reported that it was indefinitely suspending its business in Russia, which, combined with Ukraine, accounts for a mere 2% of the Swedish telecom equipment maker’s global sales.
Ericsson said it would set aside Skr900m ($95 million) provision in the first quarter for impairment of its assets and other exceptional costs related to the termination of its business in the country.