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German technology SAP may not be able to meet the deadline set to leave Russia. According to five sources interviewed Reuters, The enterprise software maker wanted to leave Russia by the end of the year. However, the plans were changed due to difficulty in finding a buyer for this business unit.
Due to the invasion of Ukraine and sanctions imposed on Russia by the West, many companies announced their intention to leave the Russian market. In many cases, companies have decided to sell business units to local companies.
In July, SAP’s chief financial officer, Luka Mucic, decided that the company wanted to exit Russia by the end of the year, which would result in a loss of 350 million euros.
Reuters notes that SAP still has annual contracts in the country even though the company has closed its data centers and cloud unit in the country. Company may face legal risks if you do not comply with these agreements.
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According to information gathered by Reuters, under Russian law, employees associated with SAP’s local unit, known as SAP CIS, can be held individually liable for potential contract violations.
“SAP is fully committed to winding down our business in Russia as soon as possible,” a company spokeswoman told Reuters. “However, recent legal developments in Russia limit our options regarding the final steps in our exit.”
SAP has already “significantly reduced” its workforce in Russia, according to figures provided to Reuters.
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