Putin: almost total “blocking” of high technologies causes “colossal difficulties” – Companies

In general, the Russian president minimizes the impact of sanctions and rarely makes such alarming statements.

After the attack on Ukraine, tech giants (Microsoft, Apple, Google, Adobe, Cisco), like other large companies, left the Russian market or suspended at least part of their activities in the country, leaving consumers, businesses and administration alone. there is no alternative. Enough to cause colossal difficulties that even Putin is no longer willing to deny..

Search intensively and intelligently for new solutions

Russian President Vladimir Putin called on Monday to overcome the serious difficulties associated with the sanctions, which deprived Russia of high Western technologies, on which it is very dependent. “Realizing the colossal difficulties we face, we will intensively and intelligently look for new solutions,” Vladimir Putin said during a government meeting, which was broadcast on public television. “Today, in relation to our country, not just a restriction, but an almost total blocking of access to foreign high-tech products is being carried out,” he continued. Speaking of a “huge challenge,” he called for the prudent use of existing Russian sovereign technologies to develop “new innovative national companies.” “We are not going to give up,” he insisted, saying that “the survival of the Russian economy” depends “simply” on the high-tech sector.

In addition to the departure of key companies to Russia, Western suppliers stopped providing technical support to their Russian clients. It’s also good products such as Apple phones and computers, Cisco telecommunications systems, mobile app marketplaces, or operating systems such as Windows.

Currently, Russia has allowed the so-called “parallel” import of this type of goods, i.e. without the consent of whoever owns the intellectual property, or decided to turn a blind eye to software piracy.

Brain drain

Vladimir Putin also pointed out that Russian tech giants such as Yandex or Ozon also faced serious problems because they were financed in Western markets or thanks to foreign financial institutions. “It is necessary to quickly develop such mechanisms in the Russian financial system so that fast-growing Russian companies can attract domestic private capital for their development,” Putin said. He also called on large Russian public groups “who don’t know what to do with their billions” to invest in Russian technology.

Deputy Prime Minister Dmitry Chernichenko assured him that the Russian high-tech sector has sufficient potential to “level out the consequences of sanctions in three to five years.” He assured that 21.5 billion rubles (370 million euros at today’s exchange rate) has already been allocated for the development of “Russian solutions where it is now urgently needed.”

The Kremlin has repeatedly said that Russia is resisting Western sanctions, but their effects are likely to have the most severe consequences in the coming months or years, cutting the country off from new technologies and global supply chains and financial transactions.

Moscow promises to offset these medium-term effects by developing Russian alternatives.

At the same time, the suppression of critics of the Russian offensive in Ukraine and the severing of air and financial ties with the West led to the expected outcome of at least tens of thousands of Russians working in the new technology sectorincreasing the already existing deficit. Russia will be short of one million executives in the sector in 2024, according to Mr. Putin, citing government data. “It is necessary to significantly increase state funding for the training of such specialists,” Putin said on Monday, calling for the reconstruction of university campuses and the modernization of research bases. .

After the attack on Ukraine, tech giants (Microsoft, Apple, Google, Adobe, Cisco), like other large companies, left the Russian market or suspended at least part of their activities in the country, leaving consumers, businesses and administration alone. there is no alternative. Enough to cause colossal difficulties that even Putin no longer wants to deny. Thus, Russian President Vladimir Putin called on Monday to overcome the serious difficulties caused by sanctions that have deprived Russia of the high Western technologies on which it is very dependent. “Realizing the colossal difficulties we face, we will intensively and intelligently look for new solutions,” Vladimir Putin said during a government meeting, which was broadcast on public television. “Today, in relation to our country, not just a restriction, but an almost total blocking of access to foreign high-tech products is being carried out,” he continued. Speaking of a “huge challenge,” he called for the prudent use of existing Russian sovereign technologies to develop “new innovative national companies.” “We are not going to give up,” he insisted, believing that “the survival of the Russian economy” depends “simply” on the high-tech sector. In addition to the departure of key companies to Russia, Western suppliers stopped providing technical support to their Russian customers. The same goes for products like Apple phones and computers, Cisco telecom systems, mobile app markets, and even operating systems like Windows. In the near future, Russia allowed the so-called “parallel” import of this type of goods, that is, without the consent of the intellectual property owner, or decided to turn a blind eye to software piracy. also pointed out that Russian tech giants such as Yandex or Ozon also faced serious problems because they financed themselves in Western markets or thanks to foreign financial institutions. “It is necessary to quickly develop such mechanisms in the Russian financial system so that fast-growing Russian companies can attract domestic private capital for their development,” Putin said. He also called on large Russian public groups “who don’t know what to do with their billions” to invest in Russian technology. Deputy Prime Minister Dmitry Chernichenko assured him that the Russian high-tech sector has sufficient potential to “level out the consequences of sanctions in three to five years.” He assured that 21.5 billion rubles (370 million euros at today’s exchange rate) had already been allocated for the development of “Russian solutions where it is now urgently needed”, that Russia resisted Western sanctions, but the consequences of them would probably be the most significant. the effects are felt in the coming months or years, cutting the country off from new technologies and from global supply chains and financial chains. Moscow promises to offset these medium-term consequences by developing Russian alternatives. several tens of thousands of Russians work in the field of new technologies, increasing the already existing deficit. Russia will be short of one million executives in the sector in 2024, according to Mr. Putin, citing government data. “It is necessary to significantly increase state funding for the training of such specialists,” Putin said on Monday, calling for the reconstruction of university campuses and the modernization of research bases. .

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