Putin allowed Rostelecom to buy Nokia's share in the joint venture

The joint venture RTK - Network Technologies, created in 2019 by Rostelecom and Nokia, was engaged in the production of software and equipment for communication networks. Putin authorized the buyout of the company's share in response to Finland's "unfriendly actions"

Russian President Vladimir Putin allowed the Rostelecom structure to acquire Nokia's share in their joint venture RTK - Network Technologies, follows from the order of the HEAD of state.

In accordance with the document, Restream LLC received permission to purchase 49% in RTK - Network Technologies LLC.

Rostelecom and Nokia created a joint venture in RUSSIA in September 2019, which was engaged in the production of software and equipment for communication networks. As Rostelecom clarified, the Finnish company was ready to invest up to 10 billion rubles in the project.

“The solution will allow the integration of the RTK Network Technologies company into the Rostelecom group,” the company’s press service told RBC.

Rostelecom noted that after Nokia stopped working in Russia in 2022, “the continuation of the company’s activities in the previous business model became impossible.”

“The transaction was subject to approval in the prescribed manner, and now such a decision has been received. The transaction will be completed shortly. Other details are not disclosed,” the company said.

RBC sent a request to Nokia.

After the outbreak of hostilities in Ukraine and the introduction of anti-Russian sanctions, the world's largest manufacturers of telecommunications equipment, including Nokia, Ericsson, Cisco, etc., suspended the supply of products to Russia. Later, the United States partially excluded telecommunications and Internet equipment from the sanctions list. But, despite this, in April 2022, Nokia still announced its withdrawal from the Russian market.

Last year, the company announced that it was gradually winding down its participation in the joint venture with Rostelecom as it exited the Russian market. There are agreements to gradually reduce the activity of the joint venture and withdraw from its capital or completely liquidate the enterprise, it was stated in the company’s reporting, which Tadviser reviewed.

What is Nokia known for?

The Finnish multinational company, founded in 1865, produces telecommunications equipment (headquartered in Espoo). Nokia shares are traded on the New York Stock Exchange ( NASDAQ ), as well as on the exchanges in Helsinki and Amsterdam (Euronext Paris). Nokia products appeared in Russia back in the 1960s, but the company's official representative office opened only in 2000. The Nokia division in Russia belonged to the Eurasia region.

Previously, Nokia was engaged in the production of phones, but in 2014 it sold this division to MICROSOFT Corporation (in 2016, it resold it to HMD).