Microsoft has announced its decision to halt license renewals for Russian companies beginning in October as a result of sanctions linked to the Ukraine conflict. The U.S. tech giant conveyed this move in a letter to Russian businesses, outlining its discontinuation of payment processing via wire transfer for services in Russia.
Customers have been given a two-month window to explore alternative vendors. Notably, Microsoft had already suspended product and service sales in Russia in the previous year, signaling a gradual exit from the country.
Forbes Russia estimates that a substantial majority of corporate clients, up to 90%, in the nation continue to rely on Microsoft products. This cessation of software updates from Microsoft is raising concerns about heightened cyberattack risks for Russian services. The scarcity of alternatives may push businesses towards using unauthorized tools.
Concurrently, the Russian government is actively working on eveloping domestic technologies to replace Western offerings, although these alternatives are still in the developmental stage and not widely adopted.
Amidst these changes, several other Western tech companies have also altered their services in Russia. Cisco, a prominent telecommunications equipment manufacturer, destroyed $19 million worth of equipment spare parts after exiting the Russian market. Google, on the other hand, is reported to have begun blocking its corporate services for Russian companies under sanctions, potentially affecting around 30% of corporate data stored on Google Workspace services.
Additionally, in an effort to expedite the transition to homegrown software, the Russian internet regulator, Roskomnadzor, is blocking VPN services in the country. While there have been some exceptions, such as permitting VPN services for select businesses, these changes signal a broader shift in Russia’s digital landscape.
