Why does Ukrainian business still use Russian programs for enterprise management and what is the danger? Dmytro Popinako in an interview with the Economic Truth portal

Russia continues to make money from business software in Ukraine. What does it threaten?

Despite the fact that the full-scale war with Russia has been going on for more than 2.5 years, Ukrainian enterprises continue to use software related to the aggressor country. This creates serious risks for the state and business, because Russian IT products can become a tool for espionage, interference in the activities of enterprises and even economic blackmail. In the light of new realities, Ukrainian business faces the question: why is it so important to get rid of dependence on Russian software and what steps should be taken to ensure the security and stability of enterprises?

He answered these questions Dmytro Popinako, CEO of Innoware, in an interview with the portal Economic Truth.

Why does Ukrainian business still use Russian programs for enterprise management and what is the danger?

A full-scale Russian invasion has been going on for more than 2.5 years, and the enemy does not stop terrorizing Ukraine. Along with physical war, to which Ukrainians are almost used to, Russia is actively attacking us in cyberspace.

If on land, in the air and at sea, the state and society have found effective means of countering the occupiers, then in cyberspace we sometimes voluntarily open the door to the enemy, inviting him to our IT systems, in particular, to these enterprise management systems.

Risks of monopoly development

The Ukrainian technology market has long been under the control of software owned by Russian individuals and legal entities.

This especially applies to programs for enterprise management, company accounting and internal accounting. A striking example is the Russian system "1C" created in 1991 and its disguised European clone "BAS".

Aware of the possible risks of doing business in Ukraine during the war, "1C" transferred its technological solutions to the company that distributes the "BAS" system and positions it as a Polish product. At the same time, the beneficiary of "1C" and "BAS" is the same person - a sanctioned Russian billionaire.

It is obvious that the monopoly position of this hostile software in Ukraine exposes domestic enterprises to serious cyber risks. By using Russian systems or their clones, many Ukrainian enterprises actually provide access to their confidential data to the special services of the aggressor country. Back in 2023, the Security Service of Ukraine warned that the use by state institutions of software products to which sanctions have been applied poses a real threat to the confidentiality, integrity and availability of data in automated systems.

Russia has repeatedly demonstrated its ability to damage the Ukrainian economy through cyberattacks, such as the Petya virus in 2016, which experts estimate caused more than $400 million in damage. In the context of full-scale war, when the enemy does not even hide its intentions, the vulnerability of the state and the private sector becomes a critical issue.

Prohibition or gradual replacement of Russian software

Solving the problem of sending Russian software to Ukraine is possible under two scenarios. The first is the voluntary transition of Ukrainian enterprises to safer alternatives of Ukrainian or global production. The second is a state ban on the distribution in Ukraine of software affiliated with the Russian Federation or other countries subject to sanctions, which will lead to the gradual replacement of Russian software products.

It is important to note that progressive Ukrainian enterprises are already choosing the first path, understanding the risks of using Russian software. However, a significant part of the business is not ready to give up Russian accounting systems due to their low cost and high costs of switching to safe and progressive alternatives.

The state is also moving in the direction of the second scenario. On August 19, 2024, the government registered draft law No. 11492, which prohibits the use of Russian software, in particular in the private sector. The draft law still needs discussion in the parliament and the participation of experts, but the government is confident that its implementation will increase the level of cyber protection in Ukraine.

A threat to the economy and a countermeasure strategy

The main dilemma is that the immediate ban of such software without a prepared transition period plan can lead to significant problems in the work of many businesses that depend on Russian accounting systems. This creates significant risks for the Ukrainian economy.

To prevent these risks, the authorities should develop a long-term road map that will include cooperation with business to gradually, but as quickly as possible, switch to safe alternatives.

This process will require significant financial investment, time and involvement of professionals. However, it is necessary to ensure cyber security, economic independence and Euro-Atlantic integration of Ukraine.

How to protect enterprises in new realities?

Many enterprises are already planning to replace software with safer analogues. For example, the largest software manufacturer in the world - Microsoft - has more than 80 products for accounting, enterprise management and business process support under the Microsoft Dynamics brand.

The software market is transforming, and now the competition is not between individual products, but between ecosystems such as Microsoft, Google, Amazon, Apple, Oracle. Therefore, when choosing a substitute for 1C or BAS, you should pay attention to products from the ecosystem of one of the large manufacturers.

Companies should also take into account that Ukraine is preparing to join the EU and NATO, which requires compliance with international standards, including the use of software that meets the requirements of security and compatibility with other member countries. This will increase our competitiveness in the international arena and ensure long-term stability and autonomy.

Economy, taxes and the front: countering the aggressor

By using products linked to Russian beneficiaries, Ukrainian companies not only create security risks, but also finance aggression against Ukraine. The money paid for Russian licenses goes to the budget of the Russian Federation, from which the war is financed. It is only a matter of time before Russia decides to use the dependence of Ukrainian businesses on Russian IT products for military purposes against Ukraine.

It's time to realize that our every choice shapes the future of Ukraine. So now, more than ever, it is important to choose safe and reliable solutions that will strengthen the Ukrainian front, protect our military and civilians, and bring us closer to victory in the war.

Source – https://www.epravda.com.ua/columns/2024/09/11/719202/