Ericsson says no hardware exported to Russia, only software support

Ericsson said on Friday it’s miles most effective imparting software and technical support to Russian clients and has no longer offered any telecommunications system to mobile operators there since the Ukraine war started out, after Swedish media stated the enterprise had endured its exports.

Shares of the employer fell 4% in morning buying and selling.Ericsson suspended its enterprise in Russia in April and said in August that it might exit the u . S . A . In the coming months. It recorded a rate of 900 million Swedish crowns ($eighty one million) and made four hundred personnel redundant in the usa because it winds down operations.

“Compliant with the sanctions we provide the software program and technical help for those merchandise that we’ve shipped previous to the invasion making it possible to withdraw at the same time as gratifying contractual obligations,” a spokesperson said.

“When the sanctions had been introduced we stopped shipments to customers in Russia,” he stated.

Rival Nokia, which has also announced plans to go out Russia before the give up of the 12 months, had stated it does limited preservation of vital networks to meet its contractual and humanitarian responsibilities.

Sveriges Radio Ekot mentioned that Ericsson had carried out for 12 allows for exemptions from sanctions from Sweden’s Inspectorate of Strategic Products and became granted seven.

The sanctions list by way of the Swedish authority consist of software and technology related to telecommunications.

The media outlet additionally stated the goods which Ericsson obtained permission to export to Russia could be used for the navy.

Ericsson said its products are designed for civilian use, no longer navy.

The Swedish authority issued a statement pronouncing exemptions were related to civilian use and civilian end-users.

Two analysts said the Russia report isn’t always going to look precise for Ericsson which confronted a scandal in February about bills to the Islamic State militant organization in Iraq, triggering investigations by distinctive U.S. Agencies and eroding more than a third of its market price.

“Ericsson hasn’t breached any sanctions as it has received approval … However it nevertheless stands in quite clean contrast to the declaration in their Q2-document wherein they announce suspension of ‘all deliveries to customers in Russia’,” said Jyske Bank analyst Anders Haulund Vollesen.

“Even even though cell telephony is for civil use an export licence is needed specially because of the superior encryption technology that is embedded in our merchandise, and this is to applicable for all international locations,” the Ericsson spokesperson said.

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