Following Russia’s invasion of Ukraine, Ericsson announced the suspension of operations and deliveries to customers in Russia and the orderly liquidation in accordance with EU sanctions. The exit of infrastructure activities and operations is very complex and will be carried out in an orderly manner. Please find a Q&A below which will be updated as needed.
1. Why did you request sanction waivers?
Following Russia’s invasion of Ukraine and the EU’s response of adopting unprecedented sanctions, Ericsson suspended deliveries to Russia. Ending Ericsson’s operations is complex and time-consuming; Telecommunications networks are part of the critical infrastructure of any society.
To ensure that our exit from this critical infrastructure is done responsibly and in compliance with sanctions, we have engaged with the relevant authorities. In this context, and to enable us to provide technical assistance and software for civil public telecommunications networks, the Swedish authority has granted us time-limited sanction exemptions.
These exemptions are limited to support for civilian mobile networks and will expire by the end of the year.
The exemptions will allow Ericsson to end its operations in Russia, to safeguard the safety and interests of our employees in Russia, and to terminate ongoing contractual obligations.
2. Why didn’t you publicize the exemptions you obtained to export to Russia?
Ericsson has made it clear that the company will continue to engage with authorities as we wind down our operations in Russia in a safe and orderly manner.
3. Under what circumstances must Ericsson apply for licenses from the Strategic Products Inspectorate (ISP)?
A wide range of civilian-use products, software, technology and services are also subject to export controls as “dual-use” goods. An export license may be required for the export of these goods outside of the EU and countries such as the USA, Australia, Japan, Canada, New Zealand, Norway and Swiss. These controls are implemented by the Strategic Products Inspectorate (ISP), a Swedish government authority. For exports of “dual-use” goods to Russia, the granting of an export license confirms that the exported equipment is for civilian use.
4. What happens on January 1, 2023 – will Ericsson have left Russia by then?
Ericsson is ending its customer commitments and intends to be completed by the end of the year.
In 2023, Ericsson will still have a small presence on a local basis. Additionally, some of our subsidiaries will continue to terminate messaging and voice traffic for global customers. A legal entity owned by Ericsson will be registered to complete the liquidation and to satisfy legal, contractual and administrative requirements.
400 employees in Russia have been notified of layoffs and are leaving Ericsson.
5. Do you do business in Belarus?
Ericsson has no employees, presence or ongoing customer engagements in Belarus.
We hold a 49% stake in Ericsson Nikola Tesla (ETK), a Croatian associated company. ETK has business commitments in Belarus and has obtained time-limited exemptions from the Croatian authorities. This company is listed on the Zagreb stock exchange and, as a minority owner, Ericsson cannot comment on behalf of ETK.
Some of our other subsidiaries are terminating email and voice traffic for global customers in Belarus.