Top Tech Stories April 4: How Russian IT sector is changing business models

SOFTWARE

Russian President Vladimir Putin has prohibited the use of foreign-made software for critical infrastructure from 2025. As of March 31 and until 2025, any state’s purchase of such software is subject to government’s approval.  [Source: RBC]

The prohibition of foreign-made software in Russia from 2025 opens up great opportunities for Russian IT companies, but taking advantage of these will require greater efforts by the state and the corporate sector.              [Source: Forbes.ru]

Microsoft refused to suspend operations in Russia and will work with non-sanctioned clients, though the company is in talks on limiting its activities. Microsoft’s President Brad Smith said in a response to Ukraine’s President Vladimir Zelensky’s call for tech companies to cut off all ties with Russia that doing so would mean “depriving these institutions of software updates and services could put at risk the health and safety of innocent civilians, including children and the elderly.”   [Source: Reuters]

NEW APPS

Russian banks have launched an analogue of Apple Pay and Google Pay services that suspended operations in Russia. That’s based on the quick payments system now used for money transfer between Russian banks’ customers. [Source: Cnews.ru]

A Russian non-government organization Digital Platforms will launch an analogue of Google Play called NashStore. More than 700 companies are reported to promote their apps through the new platform accessible for Android gadgets. [Source: RBC]

Russian company Aquarius will manufacture laptops, tablets, servers, and other kinds of electronics at its new plant near the city of Tver. With its first plant in the Ivanovo region built in 1990, the total output of Aquarius will be 2,5 million electronic items a year. [Source: Kommersant]

EXODUS CONTINUES

The European Bank for Reconstruction and Development (EBRD) will close its offices in Russia and Belarus. It will also provide $2,2 billion for Ukraine and other countries that have suffered from Russian and Belarus military actions.  [Source: EBRD]

The Russian Education and Science Ministry recommended high schools to transfer their video content from YouTube to Russian analogues Rutube and VK by Monday. This recommendation prompted renewed reports that YouTube can be banned in Russia.  [Source: TASS]

Offerings of Russian companies’ stocks on foreign exchanges may be banned, a move that would apply to both new and existing listings. A draft of a bill is now making its way through the Russian parliament.  [Source: RBC]

RELOCATION

Russian IT specialists leaving the country in the wake of Russia’s invasion of Ukraine are not lured by incentives offered by the Russian government. As reasons for relocation, they cite political and media repressions, lack of freedom, and the necessity to have access to modern technologies. [Source: Fontanka] 

MOBILE INTERNET

More Russian mobile operators have started to follow the government’s directive to remove unlimited Internet plans. Foreign telecommunication giants like Nokia and Ericsson stopped its deliveries to Russia, including supply equipment for mobile operators necessary for maintaining their capacity for processing traffic.  [Source: TASS]

The average speed of mobile Internet in Russia slowed to 21,1 megabits per second (mbps) in February 2022 compared to 21,7 mbps in November 2021 across four major operators. This happened due to traffic growth and the lack of equipment to keep up with demand.  [Source: Telecom Daily]

CYBERSECURITY AND HACKING

Russian cybersecurity company Kaspersky Lab became the first Russian company to be blacklisted as an “unacceptable risk to US national security” by the US Federal Communications Commission. [Source: The Verge]

Kaspersky Lab’s data revealed that the number of cyber attacks on Russian companies quadrupled in the first quarter of 2022 compared to the first quarter last year. The attacks became more diversified and more sophisticated. [Source: Kaspersky]

Two Russian companies Cyberpoligon and Positive Technologies will make an analogue of the international platform HackerOne that has stopped working with Russian and Belarus citizens. It is planning to attract at least 2,500 hackers. [Source: Kommersant]

Three VPN services Amnezia VPN, ProtonVPN и HighLoad VPN granted free access to media and non-government organizations blocked in Russia. The companies want Russians to have information on the Ukrainian events beyond Russian propaganda. [Source: ForkLog]

TRANSPORT AND DELIVERIES

Yandex’s groceries delivery service Yango Deli is considering leaving France and the U.K. While the company refused to comment on the reasons for the move, analysts link this to the Ukraine crisis. [Source: Kommersant]

The Russian Ministry of Transport wants ride-hailing companies like Yandex.Taxi and Uber to let the Federal Security Service have access to all of their data. The government body designed a draft of a bill to be introduced to the Russian parliament. [Source: RBC]

Russian tech company Yandex fired US-based workers involved in operation of autonomous vehicles in Michigan citing the state’s decision to suspend its licenses. The state’s authorities denied it.  [Source: The Verge]

SOCIAL MEDIA

Telegram messenger agreed to cooperate with Brazil authorities to fight against the spread of misinformation. The agreement aims at combating fake news ahead of the presidential elections in October this year.                                                                   [Source: IT World]

GAMING

The Russian video games market is estimated to shrink by 85%. At the moment, foreign majors have a 90% market share, and almost all of them stopped sales in Russia. [Source: Vedomosti]