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Russian internet crackdown hobbles small businesses

M OSCOW: With the internet crackdown, many businesses are struggling, one of which is dogwear entrepreneur Natalia Kukovinets, who has had to switch messaging apps multiple times to stay in touch with customers. Restrictions on popular messenger apps such as Telegram, curbs on VPNs and security-linked mobile internet shutdowns have affected much of Russia this year. However, the unpredictable outages pose a particular headache for many small companies, with billions of dollars in digital sales at risk. Despite state efforts to rein in its use, Telegram remains one of the top messengers. It has been the only source of sales for Kukovinets’s Wag’n Tails brand since Russian authorities restricted Meta’s Instagram in 2022 and WhatsApp in February. “Telegram is basically everything when it comes to client communication,” said Kukovinets, standing in her Moscow workshop where she makes embroidered hats and clothes for dog lovers. “It has become harder to track incoming requests. “It does not work without a VPN turned on and notifications often do not come through,” she said, wearing a custom T-shirt that said: “Peace, friendship, puppy”. She is not the only one feeling the squeeze. About 2.9 million small to medium-sized firms and 14.1 million self-employed individuals use messaging apps for business, state news agency Interfax reported last September. The Kremlin said this week it would not compensate businesses for losses suffered as a result of its days-long shutdown of mobile internet coverage in Moscow. The government jammed coverage in the capital for nearly three weeks in March and regularly blocks it elsewhere. Russian President Vladimir Putin has

It creates much inconvenience, with clients losing revenue and communication becoming more difficult: Property firm said such internet restrictions are essential for security. However, the policy has faced rare pushback from the business elite and over two-thirds of Russians believe it has made life more difficult, according to a March survey by independent pollster Levada. Moscow restaurant Skrepka added its voice to the conversation and said a restrictions-linked glitch in April left it unable to process the many online orders for its traditional iced Easter cakes. “Telegram was down, so the customers started shouting,” said manager Daria Teterina. “It was a reputational loss.” There is no official data on the economic impact of the various internet curbs. However, goods and services sold via digital platforms totalled 11.5 trillion roubles (RM602 billion) in 2025, the Association of Internet Trade Companies, an industry body, said in March. “When I am in the city centre, I do not see messages until much later,” said

The Russian government is promoting a state-backed messenger app called MAX, although some Russians are wary of using it and refuse to download it. – PEXELSPIC

against the founder of Telegram. They are also promoting a state-backed messenger app called MAX, although some Russians are wary of using it and refuse to download it. Belykh said only between 2% and 3% of his clients communicate with him via MAX. Meanwhile, Kukovinets and Teterina said they would continue using Telegram whenever possible. “There is a risk that not all our customers would be ready to move to platforms that are currently allowed. “So, we made the decision to stay with Telegram,” said Kukovinets. – Reuters

Anton Belykh, who runs Moscow-based property firm DNA Realty. “It creates a lot of inconvenience. Clients lose revenue, communication becomes more difficult, and both we and our clients end up losing money.” The Kremlin has rejected criticism that the measures represent a return to the repressive information control of the Soviet era and said the measures are temporary. But it appears unlikely that access to messaging apps will return to normal any time soon. In a related development, Russian authorities are pursuing a criminal case

Teterina said a restrictions-linked glitch in April left it unable to process many online orders for its traditional iced Easter cakes. – REUTERSPIC