Russian Industry Faces Code Crisis as IT Providers Pull Out

  • Foreign IT controls much of Russia’s modern industrial assets
  • Just 5% to 10% of oil and gas industry software is domestic
Workers in a control room at the Severstal PJSC steel mill in Cherepovets, Russia.Source: Bloomberg
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Russia’s reliance on foreign software to run its factories, farms and oil fields is turning into one of the biggest headaches for domestic industry as more IT providers pull out of the market in response to President Vladimir Putin’s invasion of Ukraine.

International sanctions and tensions over the war have forced industrial manufacturers from Siemens AG to SMS Group GmbH to wind downBloomberg Terminal operations in what was once one of their biggest markets. Their computer programs might be missed more than their machines.