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Russia intends to prohibit major corporations from utilizing foreign software

MIT outlines plans to prohibit major corporations from relying on overseas corporate cloud services and software for personal data storage and processing come September 1, 2027.

Large corporations in Russia may soon be barred from using software produced overseas under...
Large corporations in Russia may soon be barred from using software produced overseas under proposed legislation.

Russia intends to prohibit major corporations from utilizing foreign software

In a move aimed at protecting domestic IT interests and asserting digital sovereignty, the Russian government has proposed a ban on large businesses using foreign corporate cloud services and software for personal data storage and processing. The announcement, made under President Vladimir Putin's directive from mid-2025, marks a significant step in the country's efforts to reduce reliance on foreign IT services and encourage the use of Russian alternatives.

The Ministry of Digital Development (Minciфры) has proposed a gradual reduction in the use of foreign cloud services that have domestic equivalents. This comes in response to complaints from Russian business leaders about foreign services like Zoom continuing operations in Russia, resulting in financial losses for local IT developers.

The proposed restrictions are part of a broader effort to protect personal data and counter external pressures perceived as strangling Russian IT development. The ban will not apply to small and medium-sized enterprises, individual entrepreneurs, and individuals.

The relevant bills are to be developed by Minciфры together with Minpromtorg and other departments by May 1, 2026. Maksut Shadaev, the head of the department, justified the proposal due to the risks of losing access to and compromising information stored on servers outside of Russia.

Cloud services, which allow for the use of computing resources and programs located on remote servers and accessible via the internet, are commonly used in corporate structures. Among these foreign cloud services are Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform.

The transition of Russian companies to the use of domestic software solutions and cloud services is expected to be accelerated by the proposed restrictions. The ban on using foreign cloud services for state structures in Russia was introduced in September 2024. Shadaev believes that the introduction of restrictions will stimulate demand for domestic software solutions and cloud services.

However, it's important to note that the current legislation does not require the use of Russian software in information systems storing and processing personal data, which creates additional threats to their security. The proposal does not provide for a full block on access to foreign software but instead introduces a phased ban on the use of such solutions and services for each category and class, taking into account the maturity and competitiveness of available Russian alternatives.

One of the additional developments includes Russia's push to replace foreign messaging services with a national app called "Max," which will be tightly integrated into the Russian digital ecosystem and pre-installed on new devices. This reflects a broader digital sovereignty strategy tied to restricting foreign technology.

Formal plans and timelines for the implementation of such bans or restrictions are expected around September 1, 2025, when the government is required to present proposals regarding these further restrictions. As of mid-August 2025, no specific detailed implementation dates beyond the September 1 proposal deadline have been publicly disclosed.

[1] Source: TASS News Agency [2] Source: Kommersant [3] Source: RBC [4] Source: Vedomosti [5] Source: Izvestia

  1. The proposal by the Ministry of Digital Development aims to diminish the use of foreign cloud services in favor of domestic alternatives, as concerns arise over financial losses suffered by local IT developers due to the continued operations of foreign services like Zoom.
  2. In an effort to bolster Russian technology, the ban on large businesses using foreign corporate cloud services will be introduced under President Vladimir Putin's directive from mid-2025, marking a step towards reduced reliance on foreign IT services and the promotion of Russian IT solutions.

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