Russia’s SAP Substitution Efforts and Domestic IT Strategy

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There is currently no SAP business process management system in use in Russia that matches the scale of the international product, though research in this direction is advancing quickly. In an interview with Re edus, Ilya Massukh, the head of the Center for Import Substitution Competence in information and communication technologies and a former Deputy Minister of Communications of the Russian Federation, outlined the landscape and timelines involved.

The expert noted that commercial offerings are expected to enter the market in 2025 to 2026 as planned. At the same time, he pointed out that there are ready-made modules capable of replacing SAP solutions in specific areas. These modules cover functions such as payroll, human resources, and related processes. While they are not yet as fully developed as SAP itself, they are designed to address individual tasks effectively and could serve as stepping stones for a broader domestic ERP ecosystem.

Massukh also recalled that in August the Rosseti holding initiated a search for a contractor to design a domestic information system and allocated 403 million rubles for this strategic effort. This move underscores a push to strengthen local capability in ICT infrastructure and software governance, aligning with broader economic and technology sovereignty goals.

Earlier in the year, Kommersant reported that SAP informed its Russian partners and customers about the discontinuation of support for its software starting December 31, 2023. The publication cited sources indicating that notifications had reached about a hundred organizations, underscoring the immediate impact on operations and the urgency to identify alternatives and transition plans.

There have also been notable legal developments tied to the SAP relationship in Russia. Mercedes-Benz representatives in Russia filed a lawsuit against SAP seeking compensation in the amount of 189 million rubles, illustrating how supplier disputes intersect with the broader transition of SAP services in the region. The evolving situation has prompted discussions among industry observers about resilience, localization, and the future structure of enterprise software in Russia and nearby markets as the IT landscape adapts to changing regulatory and commercial conditions. [citation]

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