SAP and Oracle have announced that they would suspend their business operations with Russia amidst the ongoing war between Russia and Ukraine.
Ukraine’s Vice Prime Minister Mykhailo Fedorov tweeted on 2nd March 2022, requesting the multinational companies to cancel their engagements and business operations in Russia.
Oracle was the first to reply and said that the company has already suspended all its operations with the Russian Federation. The tweet came in just three hours after the request by Ukraine.
The tweet said, “On behalf of Oracle’s 150,000 employees around the world and in support of both the elected government of Ukraine and for the people of Ukraine, Oracle Corporation has already suspended all operations in the Russian Federation.”
SAP responded similarly by posting a blog on the same date. The company’s CEO, Christian Klein, wrote, “Economic sanctions against Russia are an important mechanism in the efforts to restore peace… We are stopping business in Russia aligned with sanctions and, in addition, pausing all sales of SAP services and products in Russia.”
SAP is providing one million euros in humanitarian support to Ukraine and further offered to convert the warehouses and offices in Europe to accommodate refugees from Ukraine.
The blog was updated on 4th March with a note that SAP will continue to serve the existing customers as per the contracts and as far as the sanctions permit, but they will not accept any new business from the Russian Federation.
Other leading companies like Apple, Ford, Google, and Disney have limited their products and services in Russia, while Spotify has made an announcement that its Russian offices would be closed indefinitely.
On the other hand, Russia is supporting its domestic IT companies by offering tax exemptions and deferment from the army. The announcement was made by Prime Minister Mikhail Mishustin at a government meeting.