Dell, Ericsson To End All Business In Russia

Russia and its President Vladimir Putin continues to pay a heavy price for its illegal invasion of neighbouring Ukraine.

Two more tech firms have announced their withdrawal from the Russian market, namely PC giant Dell and networking firm Ericsson.

It comes after Yale University continues to track and publish a list of the firms still doing business in Russia, that included a number of tech firms.

Dell ceases operations

Dell said on Saturday that it had ceased all Russian operations after closing its offices in mid-August, Reuters reported.

The PC maker is said to be a vital supplier of servers in Russia, and after Russia invaded Ukraine on 24 February, it suspended sales in Ukraine and Russia, saying it would monitor the situation to determine next steps.

“In mid-August, we closed our offices and ceased all Russian operations,” Dell spokesperson Mike Siemienas told Reuters.

“Back in February, we made the decision to not sell, service or support products in Russia, Belarus and the Donetsk and Luhansk regions of Ukraine, in addition to the already embargoed Crimea,” Dell added.

Russia infamously annexed the Black Sea peninsula of Crimea from Ukraine in 2014 and recognised self-styled, breakaway republics in the Donetsk and Luhansk regions of east Ukraine in February, moves condemned by Ukraine and Western nations.

In response to news of Dell’s exit, Russia’s industry ministry was quoted by Reuters as saying on Friday that many of the researchers and engineers working for Dell in Russia had already been offered new jobs.

“We are monitoring the development of the situation,” the TASS news agency quoted Deputy Industry and Trade Minister Vasily Shpak as saying on Friday.

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“According to our data, the vast majority of Dell’s R&D centre specialists and support engineers in St Petersburg and Moscow have already received job offers with competitive pay from Russian producers,” Shpak said.

Ericsson wind down

Meanwhile Ericsson has said it will follow its rival telecom equipment maker Nokia in completely withdrawing from the Russian market.

It should be noted that in early April Ericsson had already announced it was suspending all deliveries to customers in Russia, and would suspend its affected business with customers in Russia indefinitely.

On Monday Reuters quoted Ericsson are saying it will gradually wind down business activities in Russia over the coming months as it completes its obligations to customers.

The company reportedly said it has about 400 employees in Russia and would provide financial support to affected employees.

Ericsson, which had sent its employees on paid leave earlier this year, also recorded a 900 million crown ($95 million) provision in the first quarter for impairment of assets and other exceptional costs related to the move.

Russian daily Kommersant first reported Ericsson’s exit and said some of its support staff would move to a new firm that will be established by top managers in Russia.

Ericsson did not comment on the new firm, Reuters reported.

Nearly all western tech firms (with a few exceptions) have withdrawn from Russia due to its aggression in Ukraine.

That said, the Yale list shows shows some exceptions, and notes that mainly Chinese tech firms are still trading with Russia.