Oracle‘s Russian distributor is responsible for the consequences of the company’s withdrawal from Russia.
The Moscow Arbitration Court ruled to recover 29.7 million rubles (approximately 290,000 euros) from FORS Distribution in favor of Veltio LLC due to its failure to provide Oracle cloud services to Agrotorg, owner of the large Russian retail chain Pyaterochka.
FORS Distribution, Oracle’s distributer, and Veltio, a reseller, signed a subscription contract for cloud services for the company Agorotorg in 2020 with a 37-month subscription period and a cost of $810,000.
However, in March 2022, Oracle announced its departure from Russia via Twitter. Agrotorg filed a lawsuit against Veltio. In turn, Veltion decided to claim money from the distributor. The dispute and arbitration took place in Moscow.
Even if Oracle had not withdrawn on its own, the company likely would have ceased operations in Russia anyway due to EU sanctions imposed on March 2, 2014 prohibiting the sale of cloud solutions to companies registered in Russia.
