MOSCOW, March 13 German business software maker
SAP AG is confident it can boost revenue growth in
Russia and the former Soviet republics this year, despite the
crisis in Ukraine and forecasts that Russia's economy could tip
Vyacheslav Orekhov, head of SAP's business in the CIS
region, said on Thursday that he shared the official view of the
German business community in opposing possible economic
sanctions against Russia over its military incursion into
Ukraine's Crimea region.
SAP's revenues in the region of the Commonwealth of
Independent States (CIS), which comprises Russia and former
Soviet republics including Ukraine, rose by more than 20 percent
"Our sales expectations are for double-digit growth (in
2014). We expect a minor acceleration but it will be noticeable
against our (global) scale," Orekhov told a press conference on
his outlook for the region.
In contrast, SAP's total global group revenues last year
rose only 4 percent to 16.8 billion euros, or 8 percent growth
at constant currencies.
The German company does not break down its revenue by
separate business units but in 2011 it said it aimed to achieve
turnover of 1 billion euros ($1.4 billion) in Russia and the CIS
region by 2015.
Russia's economy has slowed sharply, expanding by just 1.3
percent last year, and some economists expect that Moscow's
involvement in Ukraine and the prospect of economic sanctions
may push it into recession in the first half of this year.
Orekhov noted that Russian President Vladimir Putin on
Wednesday expressed dissatisfaction with Russia's growth rate,
but Orekhov also said he expected investment in Russia's economy
would continue and saw risks as moderate.
The Moscow-based Russian-German Chamber of Foreign Trade
said on Tuesday that German business was categorically against
economic sanctions from both sides and called all parties to
engage in dialogue. Orekhov said he supported that view.
($1 = 0.7192 euros)
(Reporting by Maria Kiselyova; Editing by Susan Fenton)