The effect of sanctions on IT industry in Russia
Tetushkin, Nikita (2023)
2023
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2023121336847
https://urn.fi/URN:NBN:fi:amk-2023121336847
Tiivistelmä
The US, the EU and some other countries imposed an unprecedented amount of sanctions on Russia in re-sponse to the invasion of Ukraine. These sanctions have affected all sectors of the Russian economy including IT industry, which is a crucial driver of economic growth and innovation. The effect of sanctions on the IT sec-tor in Russia is a topical issue, which, however, has not yet been extensively researched.
The aim of this thesis was to examine the impact of sanctions on the Russian IT industry and its different di-mensions, such as technological development, financial performance, international collaboration and domestic market trends, with the goal to provide valuable insights into the current state of the Russian IT industry and its prospects. Additionally, the objective of the thesis was to investigate the measures which the Russian gov-ernment employed in face of challenges posed by sanctions. The thesis utilizes qualitative approach and is based on secondary data which was analyzed, using thematic analysis technique. Data was collected from open sources, such as news and scholarly articles, researches and reports.
The findings of this thesis indicate that the effect of sanctions on the Russian IT industry was ambiguous. First of all, these sanctions achieved a limited success, cutting the country from Western capital and restricting ac-cess to advanced technologies and components. While the sanctions did not cause the immediate collapse of the Russian IT sector, they disturbed the operations of the companies which were dependent on Western IT solutions, as well as disrupted important supply chains, which caused a palpable deficit of hardware and sub-stantial components as well as significant increases in price. However, the import from third countries, which did not support the sanctions, helped Russia to cover this deficit to some extent and to maintain access to ad-vanced microelectronics and hardware. Moreover, the exodus of Western IT companies from the Russian mar-ket greatly increased the demand for domestic solutions, which caused some Russian IT companies to grow rapidly.
The aim of this thesis was to examine the impact of sanctions on the Russian IT industry and its different di-mensions, such as technological development, financial performance, international collaboration and domestic market trends, with the goal to provide valuable insights into the current state of the Russian IT industry and its prospects. Additionally, the objective of the thesis was to investigate the measures which the Russian gov-ernment employed in face of challenges posed by sanctions. The thesis utilizes qualitative approach and is based on secondary data which was analyzed, using thematic analysis technique. Data was collected from open sources, such as news and scholarly articles, researches and reports.
The findings of this thesis indicate that the effect of sanctions on the Russian IT industry was ambiguous. First of all, these sanctions achieved a limited success, cutting the country from Western capital and restricting ac-cess to advanced technologies and components. While the sanctions did not cause the immediate collapse of the Russian IT sector, they disturbed the operations of the companies which were dependent on Western IT solutions, as well as disrupted important supply chains, which caused a palpable deficit of hardware and sub-stantial components as well as significant increases in price. However, the import from third countries, which did not support the sanctions, helped Russia to cover this deficit to some extent and to maintain access to ad-vanced microelectronics and hardware. Moreover, the exodus of Western IT companies from the Russian mar-ket greatly increased the demand for domestic solutions, which caused some Russian IT companies to grow rapidly.