HomeFinancial/RegulationEricsson stands by Ukraine - Tele2 to sue

    Ericsson stands by Ukraine – Tele2 to sue


    Telco says kit supplier did not honour promises

    Russia’s Tele2 has started legal proceedings in Moscow against Ericsson over what it says is the Swedish firm’s refusal to honour agreements to supply equipment, its representatives have told Reuters. The complaint was filed with the Moscow Arbitration Court. In April Ericsson said it was suspending business in Russia and would fully exit the market in the near future, writing off 900 million Swedish crowns (€81 million) and making 400 local employees redundant.

    In September there were reports that equipment maker was still exporting to Russia, but Ericsson said it was providing Russian clients with software and technical support. The Swedish telecoms machinery maker said it has not sold any equipment to Russian mobile operators since February 24, the day that Russia ordered tens of thousands of troops to move over the border into Ukraine.

    In a statement to Reuters on Friday, Tele2 said it had initiated proceedings against Ericsson Corporation and Satel TVK due to the refusal of the companies to fulfil their obligations to provide equipment. “Most of the undelivered equipment refers to orders made long before sanctions were imposed” it said. Satel TVK is the Russian distribution channel partner that supplied Tele2 with Ericsson equipment.

    Tele2 said it had engaged in eight months of negotiations with Ericsson to attempt to find a solution, but had not received “constructive proposals” from the company. Tele2 Russia was originally founded by the SwedishTele2. It has been operating since 2003 but in 2020, Tele2 Russia became an wholly owned subsidiary of Rostelecom and it currently has around 44.6 million subscribers.

    “We are aware of a lawsuit reported in Russian news media, but cannot comment further at this time,” said an Ericsson spokesperson.