Exclusive: SAP delays Russia exit as deal talks fail and workers at risk
Summary
During SAPs more than 30 years operating in Russia, corporations have invested heavily in its business planning and management systems, making rapid replacement of them challenging, said Leonid Konik, editor-in-chief of ComNews, an IT-focused publication. These include grappling with their contractual obligations, avoiding work for sanctioned individuals or institutions, offering staff relocations, and facing Russian state pressure on departing foreign companies. In the scramble to leave, some Western companies have sold their businesses to investors Russia deems friendly, or transferred them to local managers along with the liabilities - often booking costly losses. To discontinue operations in Russia - unless facing sanctions - could be considered as a breach of contract and might lead to court cases in the country, said Anton Imennov, senior partner of the Moscow offices of attorneys Pen & Paper. If SAP exits, local staff could be left to deal with potential legal repercussions which is why a management buyout is the preferred solution from the companys perspective, two sources said.
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