On Wednesday, Russian President Vladimir Putin gave the green light for Nokia to sell its share in a joint venture with Russian Rostelecom, which has now become a desk box company. This move marks Nokia’s exit from the Russian joint venture, with Rostelecom’s subsidiary acquiring a minority stake in the venture.
The joint venture, RTC Network Technologies, was established six years ago but became non-operational after Nokia began withdrawing from the Russian market in 2022. Putin’s approval was necessary for Nokia’s legal withdrawal from the joint venture, as per Russian legislation governing foreign companies exiting strategic industries in Russia. This regulation requires the president’s personal approval for such transactions, a response to economic sanctions imposed by Western countries.
Nokia’s decision to exit Russia came after the country invaded Ukraine, leading to product deliveries and new business being suspended and research and development activities being relocated out of the country. The joint venture with Rostelecom was initially aimed at investing in next-generation mobile networks and IoT technologies. However, with Nokia’s withdrawal, the joint venture ceased all business operations.
Despite completing the transaction for Rostelecom to acquire Nokia’s share, many details remain undisclosed. The completion is expected to take place shortly as Rostelecom moves forward with its plans. This move by Nokia to exit the joint venture is part of a larger trend of Western companies withdrawing from Russia, leaving behind legally existing entities with no operational presence. Overall, Nokia’s decision to divest its stake in the joint venture signifies the end of its business activities in Russia following a period of diminishing operations.
