Ericsson said on Friday that it has only provided software and technical support to Russian customers and has not sold any telecoms equipment to mobile operators since the outbreak of the conflict in Russia and Ukraine, following reports in Swedish media that the company continues to export hardware, Reuters reported. The company’s shares were down 4.6 percent in early trading.
Ericsson suspended its operations in Russia in April and said in August it would exit the country in the coming months. It recorded a charge of 900 million Swedish kronor (about $573 million) and laid off 400 people in the country as it ended operations.
“In order to comply with the sanctions, we provided software and technical assistance for those products shipped prior to the conflict, allowing us to be in compliance with our contractual obligations,” a spokesperson said.
“When the sanctions were announced, we stopped shipping to Russian customers,” he said.
Rival Nokia, which has also announced plans to exit Russia by the end of the year, has said it has limited maintenance of key networks to meet its contractual and humanitarian obligations.
Sveriges Radio Ekot reports that Ericsson has applied to the Swedish Strategic Products Inspectorate for 12 sanctions-exempt licenses and has been granted seven.
The Swedish authorities’ sanctions list includes software and technology related to telecommunications. It did not immediately respond to a request for comment.
Ericsson said the licenses are for software and technical assistance.
“Export licenses are required even if the cell phones are for civilian use, mainly because of the advanced encryption technology embedded in our products, which applies to all countries,” he said.
“Ericsson’s products are designed for civilian use, not military use.”
