Russian Internet Restrictions Disrupt Small Business Operations

Unpredictable internet outages and restrictions on popular messaging applications have created operational difficulties for small businesses across Russia this year. Russian dogwear entrepreneur Natalia Kukovinets has switched messaging apps multiple times to maintain contact with customers.

"Telegram is basically everything when it comes to client communication," said Kukovinets. She reported that tracking incoming requests has become harder because the app requires a VPN to function reliably and notifications often fail to arrive. The restrictions include curbs on VPN use and security-related mobile internet shutdowns that have affected much of the country.

Around 2.9 million small- to medium-sized firms and 14.1 million self-employed individuals use messaging apps for business, according to state news agency Interfax in September. Moscow restaurant Skrepka was unable to process online orders for traditional iced Easter cakes in April after a glitch linked to the restrictions.

"Telegram was down, so the customers started shouting," said manager Daria Teterina. There is no official data on the economic impact of the internet curbs. The Kremlin stated this week that it would not compensate businesses for losses from a days-long shutdown of mobile internet coverage in Moscow.

Coverage was jammed in the capital for nearly three weeks in March and is regularly blocked elsewhere. Russian President Vladimir Putin has said the restrictions are essential for security. A March survey by independent pollster Levada found that over two-thirds of Russians believe the measures have made life more difficult.

Anton Belykh, who runs Moscow-based property firm DNA Realty, said delays in receiving messages create inconvenience for clients and result in lost revenue. "When I’m in the city center, I don’t see messages until much later," he said.

The Kremlin has rejected criticism that the measures represent a return to Soviet-era information control and has described them as temporary. Authorities are pursuing a criminal case against Telegram's founder and are promoting a state-backed messenger called MAX.

Belykh said only 2-3% of his clients use MAX. Kukovinets and the restaurant manager said they would continue using Telegram when possible. "There is... a risk that not all our customers would be ready to move to platforms that are currently allowed.

So we made the decision to stay with Telegram," said Kukovinets. It appears unlikely that access to messaging apps will return to normal in the near term.