If the company reports into a foreign parent, the drivers are different: your Ukrainian subsidiary runs 1C.
“Is 1C banned in Ukraine?” comes up constantly, and the answer is more nuanced than yes or no. Let's break down what is actually in force, who it affects and what a business still running 1C or BAS should do.
What exactly is restricted
Sanctions against the developer of 1C have been in force in Ukraine since 2017: the software is prohibited in the public sector and the developer is on sanctions lists. In 2023 the restrictions were extended to the developer of BAS — a product positioned as a “Ukrainian” replacement for 1C that technically runs on the same Russian-origin 1C:Enterprise platform.
Does this affect private business
Formally, the direct prohibition applies to state bodies and enterprises. But for private business, running sanctioned software creates very real risks:
- Legal. Working with a sanctioned vendor is a grey zone that can surface during inspections, tenders or investor due diligence.
- Technical. Without official updates the system receives no security fixes and falls behind legislative changes.
- Reputational. For international partners and clients, Russian software inside a company is a red flag.
- Talent. The pool of 1C specialists in Ukraine is shrinking, and support gets more expensive every year.
In short: even if your business formally falls outside the ban, staying on 1C or BAS is accumulating risk with nothing gained in return.
What to switch to
For mid-market companies the main alternative is cloud ERP from international vendors. Microsoft Dynamics 365 Business Central covers accounting, warehouse, purchasing, sales and manufacturing and runs from EU data centres. We compared the options in detail in 1C vs Business Central.
Where to start
Not with licences — with an audit: what from your current system maps to the new standard, what needs development, how much data actually has to move. That gives an honest budget and timeline before any commitment. How the process works is covered in our guides to moving from 1C and moving from BAS.
Still deciding whether the platform fits your business? Start with what Business Central actually covers — the problems it solves, what it covers, and how implementation and migration actually run.