Off-Prem

Channel

Ericsson pulls out of Russia 'indefinitely' to protest war in Ukraine

Plus: AMD tells El Reg it stopped 'all technical, product support and marketing' in pariah state


Swedish network system maker Ericsson has confirmed it has "indefinitely" halted all shipments to clients in Russia, joining the ever growing list of tech organizations protesting the atrocities in Ukraine.

The decision to stop deliveries to Russia was implemented in "late February" Ericsson told the world today as it outlined for investors and others interested in its affairs the financial cost of doing so.

"In 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," it said.

Employees working for Ericsson in Russia "will be placed on paid leave," the vendor added. "The priority is to focus on the safety and wellbeing of Ericsson employees" in the country.

Many of the household tech names in the West paused shipments of hardware and software to Russia since it invaded Ukraine in late February, including IBM, Dell, HP, Microsoft, Google, Oracle and more. Most have not put a dollar figure on how much that action will cost, though Adobe and RPA player UiPath did.

Ericsson said that as a consequence of its withdrawal, the company will lodge a 900 million crown ($95.32 million) provision for Q1 of 2022 for the "impairment of assets and other exceptional costs."

"No staff redundancies is included. The provision will be recorded in Other Operating Expenses in Segment Networks. Around one third of this amount impacts cashflow," the company added.

Work by Ericsson in Russia has included helping to develop a private 5G-ready network for industrial customers with Mobile TeleSystems Public Joint Stock Company, the largest mobile comms provider in the country.

Ericsson also ran a 5G Innovation Hub in Moscow and established the Ericsson Academy Moscow in 2014 to provide skills locally to use its kit.

The loss of business for Ericsson will no doubt be manna from heaven for Huawei, which has found no friends in Washington but is reportedly already well ensconced in Russia, accounting for 40 to 60 percent of the wireless network equipment installed. Now it will have one less competitor to worry about, for the time being at least.

Just days ago Intel confirmed it had "suspended all business operations" in Russia a month or so after pausing all shipments to the nation. The Semiconductor Industry Association said Russia accounted for 0.1 percent global chip purchases in 2021.

AMD also froze sales and distribution of its products to Russia in late February, and has now updated its stance. "In conjunction with our earlier suspension of sales in Russia, AMD also suspended all technical and product support and marketing is Russia at that time," a spokesperson told us. ®

Send us news
18 Comments

Intel cranks up accelerators in Xeon 6 blitz to outgun AMD

But you're probably not cool enough for Chipzilla's 288-core monster

AMD looks to undercut Nvidia, win gamers' hearts with RX 9070 series

The question is whether we can find them in stock and at MSRP

Talk of Broadcom and TSMC grabbing pieces of Intel lights fire under investors

Chipzilla's design and manufacturing limbs said to be on the table

Intel slows its roll on $28B Ohio fab expansion, pushing production to 2030s

x86 giant still expects to ramp 18A process tech this year

<i>The Register</i> gets its claws on Huawei’s bonkers tri-fold phone

It’s well-built and surprisingly easy to handle but let down by Android. And stupidly expensive

Microsoft trims more CPUs from Windows 11 compatibility list

OEMs blowing dust from the processor stock cupboard, beware

Ampere bets on Arm to muscle into Intel's telco territory

Chipmaker touts high-core, low-power Altra processors as the future of 5G and AI inferencing

Framework Desktop wows iFixit – even with the soldered RAM

Is stuck-down memory forgivable if it's for the sake of performance?

Huawei to bring massively expensive trifold smartphone to world market

There's everything to play for, but there ain't no Play Store

If you thought training AI models was hard, try building enterprise apps with them

Aleph Alpha's Jonas Andrulis on the challenges of building sovereign AI

Broadcom reportedly investigates acquiring Intel’s chip design biz

Shhh. Don’t tell Hock Tan about those Xeons that unlock functions when you pay a fee

Intel loses another exec as datacenter, AI chief named Nokia CEO

Justin Hotard tapped to replace Pekka Lundmark at the Finnish telco