Accountants in Ukraine are panicking due to the prohibition of “1C”

The system “1C” in Ukraine is extremely widespread. You can find it almost in every office. Although traditionally, the “1C” accounting software consider, among the other functions is the management of the trade and personnel payments in the retail trade, workflow and the like. According to experts, in Ukraine it is used from 300 to 500 000 companies, writes Deutsche Welle.

After the announcement of sanctions against the “1C” and other Russian companies, among the Ukrainian people there appeared a serious panic. “The phone just red: from all over the country call and ask what to do with the ban. The government does not explain anything and accountants are afraid of the collapse, calculate they will have everything manually,” – said Vice-presidentcy Council of independent accountants and auditors Olena makeieva.

Presidential decree on the extension of sanctions against Russian companies and their subsidiaries was a surprise for the Ukrainian it market. In the sanctions list were also a large number of IT service companies, integrators, manufacturers and distributors of ERP and CRM for business. Blocked as Russian companies such and Ukrainian legal entities who sell to the Russian it-products. In the sanctions list includes the company “skyline Software” that coordinates the work of the network of companies that distribute in Ukraine the franchise popular Russian system “1C” and the company “Eurocopter”, which is the owner of copyright on the program “1C: Enterprise”.

“We were shocked by this decision. We don’t understand the logic of the NSDC decision and think it is a mistake,” said the Director of “skyline Software” Vadim Mazur.

Despite the fact that the sanctions include freezing assets, limiting trade operations, suspension of performance of economic and financial obligations, in a press-service of the company “1C” said the use of their software products fully comply with the current legislation of Ukraine, the program works, and technical support is provided in normal mode.

Accountants in despair

Makeeva indicates the absence of any communication of the government with business. It is estimated that alternative 1C in terms of functionality and price in Ukraine, as foreign similar American or German it products are much more expensive and allow to go for such programs in Ukraine will be able only individual large enterprises.

According to the Chairman of the Ukrainian public Union “Chamber of auditors and accountants of Ukraine” Alexander Boiko, “1C” is actually a monopolist on the Ukrainian market thanks to its pricing policy and “adjust” under Ukrainian realities. Boyko supports the application of sanctions to Russian companies, however, said that the ban was to apply only to state enterprises. “We were not given alternative is not offered the same national system, but all the banned,” says Boyko.

But apart from similar American and European companies SAP AG, Microsoft, IBM, internal ERP and CRM systems for business and offer the Ukrainian company – the Corporation “Information technologies” and the company “Intelligence Service”. The Association “it Ukraine” support the abolition of the monopoly “1C” on the Ukrainian market. “We have a war with Russia. And it is a chance for the Ukrainian or foreign developers to offer Ukrainian consumers their products and gain a foothold in this market”, – said Vice-President of the Association “it Ukraine” on legal questions Dmitry Ovcharenko.

The initiators of the block is already campaigning FOR the Russian users to look for alternatives. “I am a supporter of the development of Ukrainian software products and services, a supporter of the fight against the Russian propaganda machine, I prefer software products and services with a friendly Ukraine as democratic countries”, – wrote on his page in Facebook Deputy head of the presidential Administration, a former top Manager Dmitry shymkiv, Microsoft.

However, the it developers do not exclude that under the guise of conflict with Russia, the Ukrainian government is lobbying the business interests of big international and Ukrainian it developers.

“I do not understand the principle of integration of it companies in the sanctions list. The impression of artificial limitation of competition on the market and clearing the road for us”, – said the Director of the company “Corporation Galaxy” Sergey Litvinenko. His company is also included in the sanctions list. According to Litvinenko, an informal discussion about the redistribution of the Ukrainian market of it services among developers conducted since the beginning of the year.

What will change for users?

Official clarification on the application of sanctions currently, no, however according to the lawyer Axon Partners of Dmytro Gadomsky, a Russian customer of a software product, particularly popular in Ukraine, “1C”, doesn’t have to change. Users, he says, will be able to receive updates and other support. At the moment the company is limited only to sales of new licenses.

“Penalties apply only to legal entities – sellers and developers. User restrictions do not apply. The use of the previously purchased license is legitimate and the user checks, the SBU has no right to come,” said gadomski.