Nokia|On Wednesday, Russian President Vladimir Putin gave permission to the Russian Rostelecom to buy Nokia’s share of the joint venture that turned into a desk box company.
The summary is made by artificial intelligence and checked by a human.
Nokia exits the Russian joint venture.
Rostelecom’s subsidiary buys a minority stake in Nokia.
The joint venture has been on paper without business.
Putin’s approval is a prerequisite for Nokia’s final withdrawal.
Network equipment manufacturer Nokia is exiting the joint venture that has turned into a desk box company, which is the last vestige of its business in Russia.
President of Russia Vladimir Putin gave permission on Wednesday for a subsidiary of the country’s largest telecom operator Rostelecom to buy Nokia’s minority stake in a joint venture called RTC Network Technologies.
According to the Russian news agency Interfax, the president’s order regarding the permit was announced on Wednesday in the country’s collection of official orders.
The operation of the joint venture, established six years ago, became impossible after Nokia began withdrawing from the Russian market in 2022, Rostelecom told Reuters in a statement.
HS is also told about Nokia that all its operations both in Russia and with Rostelecom will end in 2022.
After Nokia’s withdrawal from Russia, the joint venture has only existed legally on paper without any business operations. Nokia says that granting the license is a condition for the company’s final legal withdrawal from the joint venture. The transaction approved by Putin is therefore a technical arrangement.
Nokia’s share of the joint venture has been 49 percent and Rostelecom’s subsidiary 51 percent. Rostelecom’s largest owner is the Russian state.
President The permit issued by Putin on Wednesday is part of the current Russian legislation.
According to Russian legislation, the president of the country must personally approve all business transactions of Western companies leaving Russia, which are made in industries classified as strategic by Russia.
Obtaining permission to sell such companies may take a long time. The regulation is the Russian government’s response to economic sanctions from Western countries.
Rostelecom estimated to Reuters that the transaction will be completed “soon”. The company did not disclose other details of the transaction.
Nokia also refused to comment on the details of the transaction to HS.
Many western companies decided to withdraw from Russia in the spring of 2022, and in the process, western companies have been left with legally existing companies in Russia that have no business or personnel.
Nokia and Rostelecom established a joint venture in September 2018. The establishment of the joint venture was the result of a cooperation agreement that the companies signed in the same year in connection with the St. Petersburg Economic Forum.
Rostelecom said six years ago that the purpose of the joint venture is to invest in technologies related to, among other things, next-generation mobile phone networks and the Internet of Things.
Nokia’s task had been agreed to offer expertise, its product range and financial assistance to the joint venture, Rostelecom said in its press release in 2018.
Nokia said in April 2022 that it would withdraw from Russia after the country invaded Ukraine.
Nokia announced that it has suspended its product deliveries and all new business in Russia, and that it has started moving its research and development activities out of the country.
Due to the withdrawal, the company made a provision of around one hundred million euros for its results review for the first quarter of 2022.
#Nokia #Nokia #received #Putins #permission #break #Russia
