US$12.6 million gone every day: Moscow counts losses from internet shutdowns

Losses from internet shutdowns in Moscow are estimated at about RUB 1 billion (US$12.6 million) per day or RUB 41 million (about US$518,000) per hour.

Source: The Moscow Times, an independent Amsterdam-based news outlet, citing Russian newspaper Kommersant

Details: Sources from the Russian IT market told Kommersant that the total losses in Russia over the five days of restrictions are estimated at between RUB 3 billion (US$37.9 million) and RUB 5 billion (US$61.1 million), based on the share of the digital economy in the gross regional product.

Mass restrictions on mobile internet noticeably affect the work of courier and taxi services, car-sharing and retail trade.

The press service for the Association of Internet Trade Companies (AKIT), which includes more than 80 retail companies, said: "Due to regular shutdowns, the issue of a 'white list' is critical for business."

"In our view, any Russian service operating legally and providing services to the population should maintain its availability. Otherwise, such a situation may lead to serious distortions of competition, when several of the largest services will be able to operate while all others cannot," the association said.

Up to 50-70% of internet traffic in Russia comes from mobile devices.

Background:

• Mobile internet was switched off in Moscow and Saint Petersburg, and the shutdowns in the Russian capital have been ongoing for several days.
• However, websites on the "white list", including the state services portal Gosuslugi, social media platforms (VKontakte and Odnoklassniki), services run by Yandex, marketplaces and the resources operated by state bodies, continue to operate.

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