EPAM reaches agreement on sale of nearly all assets in Russia

MOSCOW. Nov 7 (Interfax) - Software developer EPAM Systems Inc. has signed agreements to sell virtually all of its assets in Russia to a third party, the company said in its financial reporting.

It has not been disclosed with whom the agreements for sale have been reached. The report says that the timing of the sale depends on a number of conditions, including regulatory approvals. The agreement itself was signed back on September 7.

EPAM in early April announced its intention to cease operations in Russia amid the military operation in Ukraine and planned to complete this process within 3 months.

According to the report, the company incurred employee layoff costs of $0.7 million in Q3 and $16.9 million in 9M due to the ongoing phasing out of business in Russia.

The company incurred $37.5 million ($4.4 million in Q3) in expenses for relocation of employees from Russia, Ukraine and Belarus in the first 9 months of 2022.

Also in the first nine months, $38.5 million was allocated to support employees from Ukraine and their families. A total of $100 million was allocated for these purposes, as announced in March.

The company recorded a loss of $1.3 million from the impairment of assets in Ukraine in 9M.

EPAM Systems Inc. was founded in 1993 and develops custom software for various sectors of the economy. The company has offices in 25 countries.