SAP will miss its deadline to exit Russia before the end of the year as the German software group has failed to find a buyer for the unit, five sources told Reuters, underscoring the difficulties some companies are facing to leave the country.
While it has shut its data centers and cloud business in the country, SAP still has annual contracts for its maintenance business in Russia that it must service or face legal risks, said the sources.
“SAP is fully committed to winding down our business in Russia as quickly as possible,” a SAP spokesperson said. “Recent legal developments in Russia have, however, limited our options with regard to the final steps of our exit.”
Under contract rules, SAP must give three-months notice before severing relationships, which it has not done because of concerns over legal repercussions, the sources said.
SAP’s maintenance contracts in Russia automatically renew annually and were extended in September for another year, three of the sources said.
