By John Meyer, financial consultant. Eurasia Business News, March 5, 2022
View on Moscow City, the main business and financial centre of the Russian capital, with corporations supplied by SAP and Oracle softwares. Photo credit : Swann Collins, 2017.
Western developers of industrial software for organizations SAP SE and Oracle Corp announced the suspension of activities in the Russian Federation. Their systems are used by almost all Russian industry, energy, transport, and other industries. Users of cloud systems can be disconnected from them immediately after the expiration of licenses. Those whose software is tied to their own equipment will be able to use the software, but will not receive updates. Partially analogues of SAP and Oracle in Russia already exist, but emergency replacement will cost companies billions of rubles, experts say.
In the context of armed conflict in Ukraine, the largest international developers of system software SAP (Germany) and Oracle (USA) announced the termination of work in Russia. In a statement, SAP CE CEO Christian Klein said that the company stops business, sales of services and products. Oracle said on Twitter that it had “ceased all operations” in support of Ukraine.
Russian organizations also use additional services of SAP and Oracle. For example, at the end of 2021, Rosatom structures purchased services to support the operation of the SAP enterprise management system for 776 million rubles.
On March 3, the largest US manufacturers of semi-conductors and computing chips Advanced Micro Devices, Inc (AMD) and Intel officially announced that they are suspending all deliveries to Russia and Belarus.
U.S. sanctions imposed in response to the Russian military operation in Ukraine suggest that software developers can export to Russia only if they do not supply state organizations. According to experts, this is not something fundamentally new. Lawyers believe that companies themselves can begin to reduce supplies while they understand the nuances and risks of sanctions requirements. Many software developers will be cautious and reduce exports to Russia until they thoroughly assess the new rules.
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