Internet restrictions in Russia hurt small businesses

Small businesses across Russia are increasingly feeling the impact of tighter internet restrictions, including limits on the messaging app Telegram, stricter controls on virtual private networks, and repeated mobile internet outages.

The disruptions, particularly in Moscow, have been linked to what authorities describe as security measures. However, business owners say the interruptions are causing real financial losses and undermining customer trust.

A Moscow restaurant, Skrepka, said a recent outage left it unable to process online orders, sparking frustration among customers.

“On the eve of Easter, we decided to sell kuliches, traditional Russian Easter cakes via Telegram,” said managing director Daria Teterina. “The idea was brilliant, but the execution was flawed. When we had a lot of orders, our Telegram chatbot crashed and remained non‑functional for an hour. Clients needed QR codes to collect their orders, but they failed to load. Telegram was down, and customers started shouting.”

Businesses report losses and delays

Other sectors are facing similar challenges. Anton Belykh, chief executive of property brokerage DNA Realty, said communication problems linked to Telegram restrictions had resulted in missed opportunities.

“When Telegram got blocked, things became more complicated, as not everyone has tools to bypass the restrictions,” he said. “Some messages do not get through, others arrive only partially, and large files often fail to load. Our presentations are quite heavy, so we have to switch to email or ask clients to find Wi‑Fi.”

Entrepreneurs who rely heavily on messaging apps for sales have been particularly affected. Moscow‑based dogwear business Wag’n Tails, which depends on Telegram for customer orders, has also reported disruption.

No compensation despite criticism

Despite mounting criticism from business owners, the Kremlin has indicated it does not plan to compensate companies for losses caused by internet outages.

President Vladimir Putin has defended the restrictions as necessary for national security. However, public surveys suggest many Russians believe the measures are making everyday life more difficult.

Push for domestic alternatives

At the same time, authorities are promoting a state-backed messaging platform known as MAX as an alternative to Telegram. Uptake, however, has been limited, with most businesses and customers continuing to rely on Telegram despite its instability.

Wider economic impact

The issue extends beyond individual firms. Russia has around 2.9 million small and medium-sized enterprises and more than 14 million self-employed workers, many of whom depend on stable internet services for their livelihoods.

With outages and restrictions continuing, business owners warn that the economic impact could deepen unless reliable digital access is restored.

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