By Dominic Chopping
STOCKHOLM--Swedish telecommunications company Ericsson AB said Monday that it is suspending its business in Russia indefinitely and will record a provision of 900 million Swedish kronor ($95.2 million) in the first quarter of 2022.
In late February, Ericsson suspended all deliveries to customers in Russia to give it time to analyze the potential impact of sanctions against the country.
"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 Monday.
The company said it is engaging with customers and partners regarding suspension, while Ericsson employees in Russia will be placed on paid leave.
Ericsson has around 600 employees in Russia, with a main office in Moscow, the company said in an emailed statement to The Wall Street Journal.
Russia and Ukraine combined account for less than 2% of Ericsson group turnover. The company is the major supplier of equipment to telecom operators Mobile Telesystems and Tele2 AB in the country, it added.
Ericsson said it will record the SEK900 million provision for impairment of assets and other exceptional costs, with no staff redundancy costs included. Around one third of this amount will hit cash flow.
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(END) Dow Jones Newswires
April 11, 2022 05:17 ET (09:17 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.