In the Russian Federation, the IT industry is rapidly losing the benefits that were introduced in 2022 when Western companies began to leave the Russian market. However, as of today, the Russian government is canceling some of the benefits, raising insurance contributions from 7.6% to 15%, and reinstating the norm for paying VAT on registered software, writes UNN with reference to the Foreign Intelligence Service of Ukraine.
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It is noted that this decision, which will come into force in 2026, has caused a sharply negative reaction from businesses and investors. The MOEXIT industry index has fallen by more than 17% over the year, becoming one of the worst among all sectors of the Russian economy. Investors no longer believe in "localization" and import substitution, which the official authorities constantly talked about after the mass exodus of Western companies in 2022.
Entrepreneurs predict that the abolition of tax benefits will lead to an increase in prices for IT products, staff reductions, and a 2-3 fold drop in company profits. As a result, small and medium-sized IT companies will suffer the most, as they will find it difficult to survive in conditions of increasing tax pressure and strict monetary policy.
The Russian IT industry, which was recently called the "locomotive of technological sovereignty," is now rapidly losing ground. Even among large companies, they say that "the negativity is evenly spread across all businesses."
Today's reality for the Russian IT sector is a decline in investment, the curtailment of projects, and the outflow of specialists abroad.
Addition
The Foreign Intelligence Service reported that the Kremlin risks losing control over 40% of its territory, increasingly "paying off" allies in the war against Ukraine with territory, against the backdrop of China and North Korea strengthening their influence in the Far East.