October 25, 2022
SAP, a software company that helps companies manage a wide range of functions from marketing and human resources to logistics and procurement, will miss its deadline to exit Russia by the end of the year because it has not found a buyer for the unit.
The failure to meet the deadline highlights the difficulties that some companies have in leaving the country and highlights the complications that Western companies face when leaving Russia, including juggling contractual obligations, avoiding work for sanctioned individuals or institutions, offering relocations of staff, and dealing with the Russian state’s pressure on outgoing foreign firms.
While the company has closed its data centers and its cloud business in Russia, SAP still has annual contracts for its maintenance business in Russia that it must maintain or face legal risks, according to sources who wished to remain anonymous.
“SAP is fully committed to winding down our business in Russia as quickly as possible. Recent legal developments in Russia have, however, limited our options with regard to the final steps of our exit,” a SAP spokesperson said.
The SAP spokesperson said the company had “significantly reduced” its workforce in Russia from 1,250 people and would have less than 100 staff there by year-end.
The sources for this piece include an article in Reuters.
