Nokia will have a joint venture with Russia’s YADRO to build 4G and 5G telecom base stations in Russia, as a deadline for building networks using only Russian equipment approaches, Reuters reported.
Russia will extend telecoms operators’ licenses beyond 2023 for LTE networks on the condition that they start building networks using Russian equipment, part of a wider push by Moscow to promote domestic technology and IT services.

“We will be partnering with YADRO, a Russian developer and producer of high-performance servers and storage systems to address the new localization regulatory framework,” Finland-based Nokia told Reuters.

YADRO and Nokia signed a term sheet on Nov. 23, specifying their aim to enter into negotiations with the aim of creating a JV in Russia.

Nokia and YADRO did not disclose planned terms or investments. The Kommersant daily previously reported that YADRO would hold a 51 percent stake in the JV, with Nokia taking the remaining 49 percent.

Russia’s Industry and Trade Minister Denis Manturov said the agreement would see the development of telecom equipment in Russia, with construction scheduled to begin in December.

Russian manufacturers currently account for 21 percent of the 168 billion roubles ($2.26 billion) of state telecoms equipment procurement contracts, Manturov said.

The entire market is estimated at more than 400 billion roubles, so we see quite serious potential for the development of Russian and localised joint projects, he added.

According to Kommersant, other foreign vendors, including Huawei, Ericsson and ZTE have also showed an interest in localising equipment.