MOSCOW: Russian President Vladimir Putin on Wednesday authorized a state-owned telecommunications giant to buy out Finnish mobile operator Nokia’s stake in a Russian joint venture.
Under legislation enacted in response to Western sanctions, Putin is required to personally authorize any transactions involving the departure of Western companies from sectors deemed crucial to Moscow’s interests.
In a decree issued on Wednesday, Putin sanctioned a subsidiary of Rostelecom, a state-controlled telecommunications company, to purchase Nokia’s 49 percent stake in the joint venture known as “RTC – Network Technologies.”
The partnership between Rostelecom and Nokia was established in 2018 with the objective of investing in cutting-edge technologies, particularly in areas such as 5G and the “Internet of Things.”
Nokia’s decision to exit the Russian market was announced in April 2022, following Moscow’s military offensive in Ukraine earlier that year.
Tensions between Russia and the West have escalated over the past two years, with disputes over asset ownership and economic sanctions dominating the discourse. Moscow’s recent announcement of reciprocal measures to seize assets belonging to US entities in Russia further underscores the retaliatory nature of the ongoing conflict.
Russia’s move to acquire Nokia’s stake in the joint venture reflects its broader strategy of consolidating control over critical sectors of its economy, particularly in light of Western sanctions targeting Russia’s telecommunications infrastructure.
Meanwhile, the West has retaliated by imposing sanctions on Russia’s telecommunications networks.
