Ericsson is suspending its business in Russia and putting its 600 employees in the country on indefinite leave.

In addition, the company will record a $95 million “impairment” in the first quarter for the suspension of business, according to a company press release.

Ericsson announced the move six weeks after undertaking a review of sanctions against Russia and the impact on its business. The company had already suspended deliveries to customers in February. 

“In the light of recent events and of European Union sanctions, the company will now suspend its affected business with customers in Russia indefinitely. Ericsson is engaging with customers and partners regarding the indefinite suspension of the affected business. The priority is to focus on the safety and well-being of Ericsson employees in Russia and they will be placed on paid leave,” the company release stated.

Ericsson is following in the footsteps of over 600 companies that have already pulled out of Russia, including Intel which announced its plans to suspend business in the country on April 5.

“Intel continues to join the global community in condemning Russia’s war against Ukraine and calling for a swift return to peace. Effective immediately, we have suspended all business operations in Russia. This follows our earlier decision to suspend all shipments to customers in Russia and Belarus,” the company stated while noting it was working to support 1,200 employees in the country.

Ericsson competitor Nokia announced in March that it would stop deliveries in Russia, and denied claims by the New York Times that it manufactured, installed, or serviced equipment or systems for Russia’s lawful intercept system known as SORM.

Ericsson had a strategic relationship with Russia’s largest mobile communications provider MTS and supported a 5G Innovation Hub and an Ericsson Academy in Moscow.

The suspension of its business in the country could impact its future plans in Russia due to the fact that the government said it would only extend telecom operators’ licenses beyond 2023 if they used Russian equipment, according to Reuters.

Ericsson will report Q1 2022 earnings on April 14.