Top Tech Stories March 7: Russian high-tech market hit by Ukraine crisis

RUSSIA: ESCALATING CRISIS

Alphabet Inc.’s Google blocked sales of advertising through its Google Adsense service in the Russian-language Internet. The company said it will be “temporarily pausing” Google ads from reaching users based in Russia. [Source: Google]

Big names in the FMCG, automotive, electronics, and high-tech sectors said they are leaving Russia. The list of companies closing or suspending operations in the country due to Russia’s invasion of Ukraine includes IKEA, SAP, Accenture, Microsoft, Oracle, Airbnb, Apple, Dell, Siemens, Nokia, Intel Corp., CISCO, Hayas, EPAM, IBM, Cogent Communication, PayPal, Adobe, Storytel and Deezer. [Source:RB]

Chinese retailer AliBaba is tight-lipped on its position about the conflict between Russia and Ukraine. The company is trying to continue business in Russia, including a JV with Russian partners, and capitalize in the new environment after major Western brands started to leave the country. [Source: Protocol]

Payment systems MasterCard and Visa suspended operations in Russia. While bank cards can still be used in Russia, except the cards issued by foreign banks, they don’t work outside the country. Since there are reports of little advance notice of military action in Ukraine, the banks are scrambling to secure alternatives like UnionPay.   [Source: Reuters]

Roskomnadzor blocked access to Facebook for Russian users after Meta Platforms recently blocked the accounts of four pro-Kremlin media. There are rumors Youtube can be blocked too as the platform also suspended accounts of the state media. Twitter also was banned.   [Source: Interfax]

99% of Russian major advertisers suspended Facebook and Instagram ads. They say Roskomnadzor, Russia’s government communications regulator, started to slow Instagram and blocked Facebook, which makes it difficult or impossible for ads to show up. While Facebook had a rather small number of Russian users, the loss of Instagram advertising space is more significant. [Source: RBC]

BATTLE FOR IT TALENT

Russian Internet giant Yandex, the dominant Russian search engine and versatile provider of online and offline services, warned its shareholders it may default on its debt. In late February, the New York Digital Exchange suspended trade in securities of Russian companies. [Source: The Moscow Times]

Nearly 5,000 employees of Russian IT companies want to leave the country. They flocked to themed Telegram channels to share details and tips on relocation and the best countries to start a new life. [Source: Kommersant] 

The Russian government provided incentives to the IT sector amid the economic turmoil. The set of supportive measures includes tax benefits, state-funded grants for developing Russia-made software for companies as well as individual mortgage benefits and a deferment from the draft for IT employees in order to bring more Russian products to market.  [Source: vc.ru]

Russian Deputy Prime Minister Dmitry Chernyshenko proposed the creation of ‘the Russian analogue of Booking.com”. The company suspended its service in Russia. He said there are Russian operators that have enough experience in the field. Now this experience is suggested to be scaled up for establishing a national hotel booking operator.  [Source: TASS]

The Russian government will allocate more than $20 million to subsidize companies developing AI-based solutions. Part of this sum will be spent on the creation of a national website about AI and a forum on the ethics of AI application. [Source: TASS]

UKRAINE

Nik Stronsky, co-founder and CEO of Revolut, said in a personal letter that the company made it possible for its customers to donate fee-free to the Red Cross Ukraine.  Stronky is a British resident,but Ukranian by descent. More than $1.3 million was raised within the first 24 hours. [Source: Revolut]

SOCIAL MEDIA

Telegram earned $700,000 on advertising in channels during the first two months 2022 in Russia after launching sales. The majority of the 123 channels that bought advertising options are linked to cryptocurrencies. The potential income of the messenger  from ads is $100 million a year.

SCIENCE

Karuna Therapeutics’ partners in Ukraine suspended a clinical trial of schizophrenia treatment in psychiatric hospitals across the country due to the start of the war. The data collected before the invasion will be used in the trial.

Scientists from the Nizhniy Novgorod State University designed an automatic heart diagnostic system based on machine learning. The software receives and processes data from a patient in real time and is able to detect and warn doctors about potential issues.[Source: TASS]