The Ericsson Nikola Tesla Group said on Monday that the situation cased by the Russian invasion of Ukraine had significantly affected doing business in certain markets, however the management of this provider of ICT solutions says the group "maintains business and financial stability".

“The situation caused by the invasion of Ukraine has shocked us all and provoked numerous reactions in social, political and economic terms. We at Ericsson Nikola Tesla Group sympathize with the Ukrainian people and express our solidarity as a company and as individuals in different ways,” reads a press release issued by the Zagreb-based group.

“The Group has no contractual obligations in Russia and Ukraine; however, political and economic uncertainty that has grown into a riskier form of business conditions for now adversely affects both the implementation of Ericsson Nikola Tesla’s contracted business in Belarus and new planned business opportunities,” reads the press release issued on the Zagreb Stock Exchange (ZSE) on Monday.

The group has a local company with 25 employees in Belarus, and one of its most important activities is the expansion of LTE networks for their operators and the informatization of the central health system of that country.

In 2021, revenue from these activities accounted for about 4% of the Group’s total sales results and significantly contributed to operating cash flow.

“The Management Board and Executive Management continuously monitor the situation in order to react in a timely manner and mitigate risks. In doing so, we act in accordance with binding legislation, sanctions and restrictive measures, among which we single out the decisions of the EU, the Republic of Croatia, the Croatian Bank for Reconstruction and Development, the World Bank and Ericsson guidelines,” the group said.