Digital Development Ministry considers restricting foreign cloud services with mature Russian alternatives - minister

MOSCOW. May 29 (Interfax) - The Digital Development Ministry does not rule out gradually restricting major Russian companies' access to foreign cloud services that have left Russia but have mature domestic alternatives, Digital Development Minister Maksut Shadayev said.

Amid the challenging macroeconomic situation and the high key rate set by the Central Bank of Russia, many large customers are cutting their IT budgets, making the situation in the IT industry difficult, Shadayev said.

On account of this, the ministry is considering additional incentives to boost demand for domestic IT solutions, he said.

"In this situation, our approach is that in large corporations, we can consider gradually restricting the use of foreign cloud services where mature Russian alternatives exist. This is to support [domestic IT companies] and give them the opportunity to earn additional revenue," Shadayev said at the TAdviser Summit on Thursday.

Russian companies using foreign solutions that have left the Russian market face difficulties in paying for them, with "many companies resorting to very complicated mechanisms," he said.

"De facto, these are services that we are essentially obtaining under the table from foreign companies that have in fact ceased operations here. Yes, there is undoubtedly a conflict of user habit. But if companies no longer operate [in Russia], if they have demonstratively left, it's strange that we continue paying for these services," he said.