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Export controls placed on supply of chips and hardware over Ukraine war dent economy's prospects
Russian companies have been plunged into a technological crisis by western sanctions that have created severe bottlenecks in the supply of semiconductors, electrical equipment and the hardware needed to power the nation's data centres.
Since sanctions came into force, Russia's main cloud service groups — Yandex, VK Cloud Solutions and SberCloud — have experienced a surge in demand for their services because most Russian companies are no longer willing to host their applications in data centres abroad, according to analysts at marketing intelligence group IDC. VK Cloud Solutions wrote to the Kremlin last month requesting urgent help to find "tens of thousands of servers", according to local media reports. Domestic companies are no longer able to source these from Western companies, and a shortage of the advanced chips that go into servers is preventing Russian IT manufacturers from ramping up production of their own.
With the country unable to export much of its raw materials, import critical goods or access global financial markets, economists expect Russia's gross domestic product to contract by as much as 15 per cent this year.