SAP and Oracle suspend business in Russia to Support Ukraine, SAP, and Oracle express solidarity with Ukraine against Russia
Christian Klein, chief executive officer at SAP, has issued a statement that conveys strong support for Ukraine in the second full week of the attack by the military forces of the Russian Federation.
Klein said: “Like the rest of the world, we are watching the war in Ukraine with horror and condemn the invasion in the strongest possible terms. An act as inhumane and unjustified as this is an attack on democracy and humanity. Its consequences affect us all.”
He went on to declare the German business software company’s support for sanctions and announced the cessation of business activities in Russia.
“Economic sanctions against Russia are an important mechanism in the efforts to restore peace,” said Klein. “We are in constant exchange with governments around the world, have every confidence in their guidance, and fully support the actions taken so far. We are stopping business in Russia and SAP suspend business in Russia aligned with sanctions and, in addition, pausing all sales of SAP services and products in Russia.”
However, SAP was the “clear leader in the Russian business-planning software market, supplying 53 of the top 100 Russian companies by revenue”.
The withdrawal marks a change in direction as Chief Executive Christian Klein last week in a newspaper interview defended SAP’s decision to still provide services to some industries in Russia such as energy, healthcare, and trade that have not been directly affected by sanctions.
Sberbank is also among SAP’s customers in Russia. Others include the Russian airline company, Aeroflot. On March 4, SAP updated a statement by CEO Christian Klein condemning the war in Ukraine to say: “We will continue to serve our existing customers within the scope of our contractual commitments and as far as sanctions and export control restrictions permit, but we will not accept new orders or solicit new business.”
Is SAP still suspend business in Russia?
SAP suspend business in Russia is completely dedicated to unwinding our business in Russia as fast as could really be expected,” an SAP representative said. “Late lawful improvements in Russia have, notwithstanding, restricted our choices as to the last strides of our exit
The Russian IT Industry
The IT industry in SAP suspend business in Russia has been growing at a much faster pace than the Russian economy as a whole, which is largely dependent on oil and gas, but compared with other economies it is comparatively modest.
SAP suspend business in Russia, the volume of investments of private companies in digitalization is only 2.2% of GDP, while in the USA it reaches 5%, and in Western Europe – it is 3.9%. In addition, 85% of all IT costs are generated by a small group of very large companies, according to a recent academic paper on the Russian IT market. [Russia as a part of the Global IT Market: is There a Chance for a Breakthrough? Bryansk State Technical University, Russia, 2021]
It ERP giants SAP and Oracle suspend business in Russia admitting the Russia-Ukraine War.
The Russian SAP Market
A study by Reuters suggests that up until now SAP supplied IT products and services to 53 of the largest Russian companies, leading to annual revenue of “€468m”.
Consequently, we can expect the pause in sales of products and services by SAP, and also Oracle, to have a significant impact on the Russian economy.
Ukraine History
A fully independent Ukraine emerged only late in the 20th century, after long periods of successive domination by Poland-Lithuania, Russia, and the Union of Soviet Socialist Republics (U.S.S.R.). Ukraine had experienced a brief period of independence in 1918–20, but portions of western Ukraine were ruled by Poland, Romania, and Czechoslovakia in the period between the two World Wars, and Ukraine thereafter became part of the Soviet Union as the Ukrainian Soviet Socialist Republic (S.S.R.).
When the Soviet Union began to unravel in 1990–91, the legislature of the Ukrainian S.S.R. declared sovereignty (July 16, 1990) and then outright independence (August 24, 1991), a move that was confirmed by popular approval in a plebiscite (December 1, 1991). With the dissolution of the U.S.S.R. in December 1991, Ukraine gained full independence.
The country changed its official name to Ukraine, and it helped to found the Commonwealth of Independent States (CIS), an association of countries that were formerly republics of the Soviet Union.
2022
business in Russia invasion of Ukraine
Multi-pronged offensives were launched from Russia, Belarus, and the two occupied territories of Ukraine (Crimea and Donbas). The four major offensives are the Kyiv offensive, the Northeastern Ukraine offensive, the Eastern Ukraine offensive, and the Southern Ukraine offensive.
Russian aircraft and missiles also struck western parts of Ukraine. Russian forces have approached or besieged key settlements, including Chernihiv, Kharkiv, Kherson, Kyiv, Mariupol, and Sumy, but met stiff Ukrainian resistance and experienced logistical and operational challenges that hampered their progress.
Three weeks after launching the invasion, the Russian military had more success in the south, while incremental gains or stalemates elsewhere forced them into attrition warfare, resulting in mounting civilian casualties.
In late March 2022, Russian forces withdrew from the Kyiv region with the declared aim to refocus on Donbas, leaving behind devastated settlements and growing evidence of atrocities against civilians.
The invasion began on 24 February after Putin declared his intended military intervention.
The full military operation consisted of infantry divisions supported by armored units and air support in Eastern Ukraine, along with dozens of missile attacks across both Eastern Ukraine and Western Ukraine.
Ostensibly, the main infantry and tank division attacks were launched at four spearhead incursions, creating a Northern front (launched towards Kyiv), a Southern front (originating in Crimea), and a Southeastern front (launched at the cities of Luhansk and Donbas), and an Eastern front.
All four incursions crossed into Ukraine and were approximately 100–200 kilometers beyond Ukrainian borders while occupying Ukrainian territory and encircling main cities.
By 20 March, the four incursion fronts had formed a perimeter significantly within the entire border of Eastern Ukraine and started to extensively consolidate lines of communication and support between all four fronts within Ukraine while besieging Mariupol, Kyiv, Donbas, Luhansk, and other cities.
An extensive missile bombardment campaign was also conducted with dozens of missile strikes across Ukraine, reaching as far west as Lviv.
Bucha massacre
The Bucha massacre was the killing of civilians by the Russian Armed Forces during its fight for and occupation of the Ukrainian city of Bucha amidst the Russian invasion of Ukraine. Photographic and video material of the massacre emerged on 1 April 2022 after Russian forces withdrew from the city.
According to the mayor, more than 300 inhabitants of the city were found dead in the aftermath. Ukraine has asked the International Criminal Court (ICC) to investigate what happened in Bucha as part of its ongoing investigation of the invasion in order to determine whether a series of Russian war crimes were committed.
Russian authorities denied any wrongdoing and described footage and photographs of dead bodies as a provocation or a staged performance by Ukrainian authorities. These denials were refuted by a number of groups and media organizations. Eye-witness accounts from residents have also blamed the Russian Armed Forces for the killings.
SAP suspend business in Russia, also all the major companies in the world have withdrawn their services from Russia.
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