Leaving Russia cost Western IT-firms billions – ministry

25 Dec, 2022 15:11 / Updated 1 year ago
A number of tech majors have halted operations in the country due to sanctions

Foreign information technology (IT) companies that have left the Russian market following Western sanctions this year lost roughly $10 billion in profits, the head of Russia’s Ministry of Digital Development, Communications and Mass Media, Maksut Shadaev, said on Tuesday.

The minister said that these companies, including prominent names in the industry like IBM and Microsoft, made the decision to leave on their own, aware of the losses they would suffer.

According to our estimates, the losses of international IT-companies that stopped their activities in the country in 2022 amounted to 650-700 billion rubles ($9.4-$10.2 billion),” he said, speaking at a parliamentary meeting.

Shadaev noted that Russia was eager to work with countries that are ready for cooperation despite sanctions. Even with the exodus by Western firms, the country’s technology and projects in the IT sphere remain competitive, he said.

We are now seeing a great demand for joint projects in Russian technology in Latin American countries, the Middle East, and Asia,” Shadaev remarked. He stressed that Russia would not be left out of the global IT industry and would find opportunities for cooperation on the basis of fair partnerships.

A large number of international companies, not limited to IT, have stopped working in Russia due to sanctions pressure. The list includes American, European and Japanese automakers, energy majors, retailers, restaurant and hotel chains, clothing brands and many others.

For more stories on economy & finance visit RT's business section