Equipment manufacturer Nokia and Russian storage systems manufacturer Yadro (part of X-Holding) intend to create a joint venture for the production of 4G and 5G base stations.

The controlling stake (51%) in the JV will be owned by Yadro, while the remaining 49% will go to Nokia. The agreement implies transferring production processes to the local capacities of a domestic manufacturer, transferring licenses for Nokia's software, as well as creating an R&D center for the preparation of 4G and 5G equipment lines and the construction of corporate networks.

A Yadro's spokesman confirmed the signing of an agreement of intent to establish a JV. Nokia said that the partnership is aimed, among other things, at joint work "on the regulatory framework in the field of localization." Production will be opened at the Yadro plant under construction in Dubna (Moscow region). Construction work will begin in December 2021.

The Ministry of Industry and Trade has estimated the domestic market of telecommunications equipment for public procurement at $2.2 billion (168 billion rubles), of which Russian manufacturers account for 21%, the total market volume being more than $5.3 billion (400 billion rubles).

Earlier it was reported that foreign vendors Huawei, Ericsson and ZTE are also interested in localizing production in Russia. This is due to the decision of the State Commission on Radio Frequencies, which obliges Russian operators to build networks on domestic equipment from 2023.

Original (in Russian)