Nayara loses bid to compel SAP support as sanctions bite
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Nayara loses bid to compel SAP support as sanctions bite
"SAP is committed to the highest standards of ethics and compliance, including adherence to regulations regarding export control and sanctions laws across jurisdictions. Our policy is to carry out all company activities in accordance with the letter and spirit of applicable laws in more than 180 countries in which we operate. We deeply value our customers; and will continue to engage with our customers, government authorities, and regulators in a responsible and law-abiding manner."
"I cannot invoice because my entire accounting is through SAP. I can't make a manual change... With the change in the [tax] regime, I have to download the India-specific module, which has been blocked,"
Nayara Energy was sanctioned by the EU in July for trading Russian oil. SAP withheld software support and India-specific updates for Nayara after the sanctions. Nayara filed suit against SAP India seeking to compel continued services, citing a contractual relationship with SAP India and the need to implement a new Indian tax regime from September 22. The Delhi High Court denied urgent relief to force SAP to continue services. SAP said support and updates depend on work from SAP in Germany and emphasized compliance with export control and sanctions laws. The legal case will continue into October, and SAP previously recorded a €130 million revenue hit after withdrawing services from Russian customers in 2022.
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