Russia’s earnings from tech exports have jumped more than threefold over the last two years, according to a new report from Moscow’s Higher School of Economics (HSE).
Russia sold more than $4.5 billion of technology goods and services overseas in 2020 — up 30% from 2019 and more than three times the $1.4 billion of exports recorded in 2018, researchers found.
The Kremlin has been on an aggressive drive to reduce Russia’s dependence on foreign-made technology since the imposition of Western sanctions following Moscow’s 2014 annexation of Crimea.
Russia fears its reliance on Western technology — ranging from payment cards to computer operating systems — is a potential vulnerability should the West decide to levy more penalties on the country. It is also concerned foreign intelligence services could gain access to crucial Russian systems running on foreign software.
The Russian government Wednesday introduced new rules banning the purchase of foreign-made laptops, tablets, servers and circuit boards in government contracts.
Imports of foreign-made technology were stagnant in 2020 at $4.6 billion, bringing the technology trade deficit — the difference between Russian exports and imports of tech goods and services — to its lowest level since 2001.
Despite the jump in exports, the global competitiveness of Russian-made technology is difficult to assess. The largest market for Russia’s technology exports in 2020, accounting for almost $1 billion or a quarter of all sales, was the Netherlands — a low-tax jurisdiction where a number of Russia’s top digital companies, including Yandex and X5 Retail Group, are registered.
The U.S., Germany, Switzerland, China and Belarus also accounted for more than $250 million of Russian exports each.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
