Oracle ceases services in Venezuela for sanctions

US information technology company Oracle sent letters to its partners in Venezuela informing them that it will not continue to work with them, in order to comply with Executive Order 13,884 imposed by President Donald Trump v. Venezuela, which imposes economic sanctions on the nation.

Alba Ciudad radio highlighted the news that was known through the specialized website Bleeping Computer.

According to bleepingcomputer.com, business partners located in Venezuela have been receiving letters from Marcio Silveira, senior vice president, regional general counsel and Oracle’s regional office of ethics and compliance, indicating that Oracle’s company will not be able to continue to serve in Venezuela.

The announcement of this withdrawal from Oracle comes two days after The Company Adobe, which offers graphic design, audio and video editing applications, suspended its services in Venezuela, although the letter is dated September 26.

Oracle is the world’s largest commercial database software provider, whose applications are used for massive data management in banks, insurance, financial companies, universities, and private and public institutions.

Trump’s sanctions seek to depose Nicolas Maduro as Venezuelan president, despite being democratically elected on May 20, 2018.

The website bleepingcomputer.com states that “you must not sell any Oracle services, products, hardware or software to any new customers or participate in any new business with existing customers. To the extent there are ongoing legal obligations with existing customers, Oracle is evaluating the requirements and impacts of U.S. laws and regulations on a case-by-case basis and will follow up with you and/or the customer, if applicable, with additional guidance or instruction.”

According to the information, “numerous end users have received the same letter from other suppliers and VARs based in Venezuela”.

Like Adobe, the question is that it is unclear why Oracle is targeting all of its partners in Venezuela rather than just those associated with the “Government of Venezuela,” as required by Executive Order 13.884, demonstrating that sanctions are not just government. In fact, the same letter would have been sent to other suppliers based in Venezuela.

Bleepingcomputer posted a screenshot of the letter sent by Oracle to partners that states:

“As you know, the United States government has substantially increased sanctions on Venezuela over the past two years. More recently, on August 5, 2019, President Trump issued an executive order imposing additional sanctions on the Venezuelan government. As a U.S. company, Oracle is legally required to comply with this order.

In order to ensure compliance with Executive Order 13884 and U.S. sanctions related to Venezuela, and in accordance with Section R of our Master Distribution Agreement of March 14, 2018 and all Annexes and Section W of the Agreement Oracle’s Global Partner Network, Oracle must conduct an orderly closure of its business in Venezuela. As part of this process, Oracle must terminate the above-mentioned contracts with you and cannot enter into any new business with existing customers or new customers.

Accordingly, you must not sell any Oracle services, products, hardware, or software to any new customer or participate in any new business with existing customers. To the extent there are ongoing legal obligations with existing customers, Oracle is evaluating the requirements and impacts of U.S. laws and regulations on a case-by-case basis, and will follow up with you and/or the customer, if applicable, as appropriate, as appropriate, appropriate, with additional guidance or instruction.”

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