Atlassian to halt sales to Russia after criticism

Billionaire co-founders Mike Cannon-Brookes and Scott Farquhar have changed their tune after first describing Russia’s invasion of Ukraine as ‘complex’ and ‘hard’ for employees in both countries.

Mike Cannon-Brookes and Scott Farquhar. Picture: Supplied.

Australian software giant Atlassian will pause all new sales to Russia, after the company’s billionaire co-founders Mike Cannon-Brookes and Scott Farquhar copped criticism from customers and users for not going far enough in their support for Ukraine.

The Sydney-based co-founders in a joint statement on Thursday said they would immediately pause the sale of all new software to Russia, and would suspend existing Russian state-owned licenses as well as licenses to Russian businesses that support the war.

“In saying this, we are not terminating the relationships and obligations we have to our existing small business customers in Russia. We believe focusing on businesses with positions of power and influence is the best way to live our mission and values,” the co-founders wrote in the letter, titled ‘Atlassian stands with Ukraine’.

“We are appalled by the actions of the Russian State in its invasion of Ukraine. We condemn the actions of the Russian government, and we stand with Ukraine and its people in their fight to maintain their freedom and sovereignty.

“This attack is unprovoked and a clear breach of the Geneva Convention. Ukrainian civilians are being targeted, as are public buildings, places of work, and homes – where people should feel most safe.”

Mr Cannon-Brookes and Mr Farquhar also said they would match all employee donations to eligible organisations via their Atlassian Foundation, and would work to support the company’s Ukrainian team members.

In an earlier letter on Sunday, first reported by The Australian, the executives described the sitatuation as both “complex” and “hard” for both Ukrainian and Russian employees.

“We have contractors based in Ukraine, as well as many teammates either directly impacted or with friends and family impacted, particularly in Ukraine, Poland and EMEA (Europe, the Middle East and ­Africa),” Mr Farquhar and Mr Cannon-Brooke told employees on Sunday.

“We also have Russian employees who are also feeling distressed. The situation is also hard on them.

“This is a complex geopolitical situation and everyone is trying to process it.

“It’s important we all speak with kindness and lead with heart.”

Some Atlassian employees were disappointed with the note‘s tone and its lack of unequivocal support for Ukraine, The Australian reported.

One Atlassian local small business user called on the company to “block access to your products at the service level for customers from Russia and block technical support for customers from Russia“ and called on the company “to revoke existing licences and prohibit the sale of new licences for customers from Russia”.

Atlassian co-founder Mike Cannon-Brookes. Picture: Nic Walker

Atlassian has been persistently outspoken on social and environmental issues, and last year released a report showing Gen Z and Gen Y employees in particular want to work for companies that share their values.

“As business leaders, we have an awesome responsibility. Employees want us to ensure we are making the planet better, not worse. Faced with government inaction on some of our biggest problems, it’s the business community that can step up and drive meaningful change,” Mr Cannon-Brookes said last year.

“The workforce wants business leaders to show leadership, to speak out on social and health issues, and not to shy away from them and stay silent.

“Employees are saying ‘we want to work somewhere that has values that match ours (and) we’re willing to leave if they don’t match’. There’s a risk and reward for businesses to show that leadership.”

It comes as technology companies and dark web hacktivists have emerged as key players in Russia’s ongoing invasion of Ukraine.

Tech giant Apple announced on Thursday that it had stopped selling iPhones and other products in Russia following the country’s invasion of Ukraine, and had blocked state-sponsored news outlets from its App Store.

“We are deeply concerned about the Russian invasion of Ukraine and stand with all of the people who are suffering as a result of the violence,” an Apple spokesman said in a statement. “We are supporting humanitarian efforts, providing aid for the unfolding refugee crisis, and doing all we can to support our teams in the region.”

Online group Anonymous claims to have successfully hacked and taken offline more than 300 Russian government, state media and banking websites over the past week.

Meanwhile Australian technology start-ups have also thrown their support behind Ukraine, with Sendle for example suspending all international deliveries to Russia and Belarus.

“Like most people around the world, we are outraged by the unjust treatment of innocent Ukrainians and the illegal and unprovoked assault on their country by Russia. Russia’s actions are senseless and inhumane,” Sendle managing director Laura Hill said.

“We join the Australian government, industry and other organisations in condemning Russia’s invasion of Ukraine and have made the decision to suspend all international deliveries to Russia and Belarus immediately.

“Our thoughts are with the vulnerable women, children and elderly, who are fleeing Ukraine into neighbouring countries, and the brave men and women who have remained to defend their home. We support the federal government’s efforts to fast track visas for Ukrainians who are in need of a safe haven.”

Bitcoin this week overtook Russia’s ruble in terms of total value, and its price is rallying after early pressure when Russia’s invasion of Ukraine started. The Russian invasion of Ukraine has driven demand for cryptocurrencies in both countries.

Originally published as Atlassian to halt sales to Russia after criticism