What are the sanctions against Parimatch related to?
On March 12, Parimatch Ukraine announced the suspension of its activities after being included in the sanctions list published by the country's President, Volodymyr Zelensky, two days earlier.
Founded in Kiev in 1994, Parimatch was one of 287 companies sanctioned by the National Security and Defense Council of Ukraine in connection with russia's ongoing invasion. As a result, the company is prohibited from doing business in the country for the next 50 years.
The news caught many in Ukraine off guard, especially given Parimatch's condemnation of the war. In March 2022, a week after the start of the invasion, Parimatch Tech - the company that developed the platform and marketing solutions for the Parimatch brand, and which was renamed GR8 Tech in January - revoked its franchise from russia. In the same month, it also doubled its financial assistance to Ukraine to $2 million and condemned russia as the aggressor in the war.
Parimatch is currently based in Cyprus and operates in several countries around the world. It collaborates with several football clubs, including four from the English Premier League - Chelsea, Leicester, Newcastle, and Aston Villa, as well as several esports organizations, including Team Secret and 00Nation.
What does this mean for Ukrainian esports?
Sponsorship by the bookmaker company Parimatch Ukraine in the field of esports was a very important source of income for many clubs and content creators. However, due to the sanctions imposed on the company by the Ukrainian government, Parimatch Ukraine has ceased its activities. This has led to many esports clubs and content creators sponsored by the company losing a significant portion of their income.
This situation has become a real challenge for the Ukrainian esports community. Many clubs and content creators are now forced to seek new sponsors and sources of funding. At the same time, the Ukrainian authorities promise to continue the fight against corruption and law violations that led to sanctions against Parimatch Ukraine.
Despite this, the Ukrainian esports community continues to develop and grow. There is still hope that new sponsors will be found in the near future who can support the development of esports in Ukraine and help clubs and content creators cope with the consequences of sanctions against Parimatch Ukraine.
Some esports content creators in Ukraine will lose most of their income, but some will be able to replace Parimatch with other bookmakers or sponsors sooner or later. I have canceled some ambitious projects, and other content creators probably have as well. Nobody expected this or was ready for it.Oleksandr petr1k Petryk
We had plans to establish a long-term partnership with Parimatch, with the goal of helping to develop esports in Ukraine, starting from March 1, however the recent news has come as a shock to us all. We are currently facing a financial crisis and are actively searching for resources to pay our team and partners and continue our operations.Danil Dendi Ishutin
Reaction of Parimatch
Parimatch Ukraine states that it is ready to cooperate with the government and media in order to prove its lack of ties with Russia and to restore its reputation. The company intends to draw attention to its position, emphasizing that its management and personnel fully support Ukraine and are on its side in the conflict with Russia.
Parimatch also plans to use all available means to prove its non-involvement in Russian aggression and to lift sanctions from the company. Parimatch believes that the sanctions are unlawful and unfounded and hopes for a positive result from its efforts.
We ask you to check the information that was falsified during the decision of the National Security and Defense Council and take appropriate actions regarding all unlawful violations by the Security Service of Ukraine. We are ready for public discussion, ready to answer all questions from the media and law enforcement agencies, and are ready to defend our position in court.Parimatch Ukraine
What's next?
From a business perspective, Ukrainian esports is on the brink of collapse due to the ongoing war. Bookmaking companies, such as Parimatch, who were previously sponsors of teams and content creators, can no longer provide financial support due to the sanctions imposed by the government. Without this support, the industry becomes increasingly unstable. The only exception is NAVI club, which has been able to enter the international market and sign long-term contracts with sponsors. Nevertheless, for most esports teams and content creators, tough times have come, and their future is currently uncertain.
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