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>>> EPAM ends services to Russian customers, pledges $100M in Ukrainian support


By Ryan Mulligan

Philadelphia Business Journal

Mar 4, 2022


https://www.bizjournals.com/philadelphia/news/2022/03/04/epam-russia-customers-ukraine.html?ana=yahoo


Bucks County software maker EPAM Systems Inc. said Friday it is cutting off services to customers located in Russia.

The Newtown-based company has a substantial presence in Eastern Europe with some 14,000 employees in Ukraine and almost 9,000 in Russia. EPAM was founded in Belarus in 1993. The country, a close Russian ally, has drawn criticism for its support of Russia during the war.

EPAM (NYSE: EPAM) on Friday announced its "full support of Ukraine," pledging an incremental $100 million humanitarian commitment to support employees and their families in Ukraine.

"What is happening in Ukraine is deeply personal for us," said EPAM founder and CEO Arkadiy Dobkin. He added that the software company is "doing everything possible to support our Ukrainian colleagues and friends."

For Russian customers affected by the move to discontinue services, EPAM said it would provide transition support.

"EPAM does not do work for the government in Russia and is and will continue to be in full compliance with all sanctions," the company said in a statement.

The company also said it is actively evaluating its other operations in the region. EPAM reiterated on Friday it is "executing business continuity plans and accelerating hiring across multiple locations in Central and Eastern Europe, Latin America, and India." The company continues to operate in over 40 countries.

EPAM reported 2021 revenue of $3.8 billion. Some $168 million of that revenue came from Russia, Belarus, Kazakhstan, Ukraine and Georgia, filings show.

Many companies, universities and law firms are severing ties with their customers and offices in Russia as sanctions continue to heighten and impact the global economy. EPAM joins a growing list of tech companies to cut ties with Russia this week, including Dell, Google and Microsoft. The White House announced on Feb. 24 that it would be cutting off direct technological exports to Russia and on Wednesday, it said the same restrictions would extend to Belarus.

On Monday, EPAM's stock plummeted about 46% after it withdrew its financial outlook due to "heightened uncertainties" after Russia's invasion of Ukraine. The stock began to rebound Tuesday, but is seeing a drop on Friday. As of 12:30 time, shares were down 5% to $202.30. The stock is down 55% over the last month.

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