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Moscow Internet Blackouts Cost Billions in Business Losses

Financial Times Companies •
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Moscow's central districts have been experiencing mass mobile internet outages since March 5, with daily traffic dropping 20% compared to the previous month, according to Russian internet watchdog Roskomnadzor data. The Kremlin's campaign to control online communications has intensified, causing businesses multibillion-rouble losses and disrupting essential services across the capital.

Sales of walkie-talkies, pagers, and landline phones have surged as residents adapt to the restrictions. Authorities have acknowledged the outages but attributed them to "systemic safety measures" without providing specifics. The move marks a stark shift for Moscow, which had previously maintained an image of digital sophistication despite Russia's ongoing conflict with Ukraine.

Cybersecurity experts estimate daily losses between Rbs1bn-Rbs2bn ($12.5mn-$25mn) from paralyzed cloud infrastructure, disrupted retail payments, and logistics shutdowns. The Federal Security Service (FSB) appears to be driving the policy, prioritizing security over economic impact. Unlike previous restrictions, these blackouts cannot be bypassed using conventional VPN technology, and analysts predict the "whitelist" system will soon expand to home internet as well.