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Reports Say Sanctioned Russian Companies Lose U.S. IT

Published: May 6, 2014 (Issue # 1808)



  • Young men chatting at one of Microsofts offices in Moscow, which may soon halt service to sanctioned firms.
    Photo: Vedomosti

Leading U.S. IT companies Microsoft, Oracle, Hewlett-Packard and others may be cutting off services to Russian banks and companies to comply with Washington's sanctions over Russia's actions in Ukraine, spreading the same political anxiety that the banking sector has experienced in recent months into the Russian IT market.

The multinational tech companies have already joined in the government sanctions against the banks and may completely cease cooperation with them, Gazeta.ru reported, citing anonymous sources in the IT departments of two Russian banks and confirmation from Andrei Chernogorov, executive secretary of the State Duma's commission on strategic information systems.

A Microsoft spokeswoman on Monday declined to comment, while Oracle and Hewlett-Packard did not respond to requests.

A source close to Microsoft's partners told The St. Petersburg Times that the computer giant will halt its services to the 18 companies currently included on the U.S. sanctions list but will continue to work normally with all other Russian clients.

"International companies do not make decisions about whether or not to introduce sanctions and simply cannot avoid them, so they must comply with U.S. and EU legislation," the source said, speaking on condition of anonymity.

Of the four sanctioned banks who stand to lose service, Bank Rossiya, SMP Bank and Sobinbank on Monday did not respond to requests for comment. An InvestCapitalBank spokesman said that the bank "has not yet received any written notifications from IT companies."

The companies will still be able to use the software that they currently own, but "all services, and first of all consulting and technical support, will be stopped," said Maxim Andreyev, director of business applications at IT services provider CROC Inc. They will not receive updated versions of the software or corrections to any defects that may be discovered. The risks this loss could produce are low, Andreyev said, "although a lot depends on the specific software producer."

Foreign software occupies about 70 percent of the Russian market, with U.S. software dominating that share, but its penetration of the banking sector is "minimal" with the exception of a few producers, Andreyev added. The largest problem may arise with databases, as Oracle's products "are essentially the standard in the banking sector," he said.

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ALL ABOUT TOWN

Wednesday, Aug. 20


AmCham gets back to business after a summer hiatus with todays EHS Committee Working Group Meeting. Check their website for more details.



Thursday, Aug. 21


Time is running out to see the fantastic creations on display at the 2014 Sand Castle Festival on the beach at the Peter and Paul Fortress. Adhering to the theme of Treasure Island, visitors can wander amongst larger-than-life interpretations of pirate life or attend one of the workshops held to educate a future generation of sand artists. The castles will remain on the beach until Aug. 31.



Friday, Aug. 22


Get ready to pledge allegiance to the flag during National Flag Day, paying tribute to when, 23 years ago today, the iconic hammer-and-sickle was replaced with the tricolor that now flutters in the wind. Petersburgers will be treated to a free concert on Palace Square, a military parade and a culminating air show featuring Russias Russian Knights stunt pilots.



Saturday, Aug. 23


Uppsala Park plays host to Fairy Noon today, a performance of five separate fairy tales ranging from folk classics to more haunting selections. There will be three different renditions of the tales throughout the day and tickets start at 500 rubles ($13.80) for adults and 300 rubles ($8.30) for children.


Classic Finnish cartoon characters the Moomins expect to receive a warm welcome from Russian fans during todays Moomin Festival at the Pearl Plaza Shopping Center at 51 Petergofskoye Shosse. Become a kid again or introduce a new generation to the beloved creation of Finnish writer Tove Jansson.



Sunday, Aug. 24


The tortured genius of Dutch master Vincent van Gogh gets his day in the centers Konnushnaya Ploschad during Make Art Like Van Gogh, a daylong celebration of the artist that will allow amateur artists to try and replicate the work that made the famed painter world-renowned.


Experience a variety of dances highlighting the diversity of the world around as at the final day of the Ethno-Dance International Dance Festival that has been at the St. Petersburg Humanitarian University of Trade Unions this past week. Tonights performance will feature Egyptian dancers accompanied by local orchestras.



Monday, Aug. 25


Today kicks off the Elena Obraztsovoy International Competition for Young Vocalists in the large hall of the Shostakovich Philharmonic. Talented youngsters will showcase their range over the next six days before a winner is chosen on Aug. 30.



Tuesday, Aug. 26


Love movies but hate all those words? Then check out Rodina Cinema Centers Factor of Consensus film forum this evening. Silent movie classics from the beginning of the 20th century will be screened and accompanied by a pianist, who will provide the soundtrack for the ongoing action. The screenings begin at 7 p.m. Check Rodinas website for more details.



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