Russian Internet Restrictions Devastate Small Business Operations

Small business owners throughout Russia are facing mounting challenges as government-imposed internet limitations severely impact their daily operations and customer communications.

Natalia Kukovinets, who operates a dog clothing business called Wag’n Tails, exemplifies the struggles faced by web-reliant entrepreneurs. She has been forced to repeatedly change communication platforms to maintain contact with her clientele as authorities continue expanding digital restrictions.

The government’s actions include limiting access to widely-used messaging platforms like Telegram, restricting VPN services, and implementing security-related mobile internet blackouts throughout various regions. These unpredictable disruptions particularly burden smaller enterprises, potentially jeopardizing billions in online commerce.

Kukovinets has relied entirely on Telegram for sales since Russian officials blocked Instagram in 2022 and WhatsApp earlier this year. Working from her Moscow studio where she creates embroidered accessories for pet enthusiasts, she explained the platform’s importance.

“Telegram is basically everything when it comes to client communication,” Kukovinets stated while wearing a custom shirt reading ‘Peace, friendship, puppy.’

However, she noted significant operational difficulties: “It has become harder to track incoming requests. It does not work without a VPN turned on, and notifications often do not come through.”

The impact extends far beyond individual cases. According to state news agency Interfax, approximately 2.9 million small and medium enterprises plus 14.1 million independent contractors depend on messaging applications for business purposes.

Despite these widespread effects, the Kremlin announced this week it would not provide financial compensation to businesses affected by its extended mobile internet shutdown in Moscow. The capital experienced nearly three weeks of blocked coverage in March, with regular disruptions occurring in other areas.

President Vladimir Putin has defended these internet limitations as necessary security measures. However, the approach has drawn unusual criticism from business leaders, and a March poll by independent research firm Levada found over two-thirds of Russians believe the restrictions have complicated their lives.

Moscow restaurant Skrepka experienced firsthand consequences when an April glitch prevented processing numerous online orders for traditional Easter desserts.

“Telegram was down, so the customers started shouting,” explained manager Daria Teterina. “It was a reputational loss.”

While official economic impact data remains unavailable, the Association of Internet Trade Companies reported that digital platform sales reached 11.5 trillion roubles ($153.74 billion) in 2025.

Anton Belykh, who manages Moscow property company DNA Realty, described ongoing communication problems affecting his business operations.

“When I’m in the city centre, I don’t see messages until much later,” Belykh said. “Overall, it creates a lot of inconvenience. Clients lose revenue, communication becomes more difficult, and both we and our clients end up losing money.”

The Kremlin has dismissed comparisons to Soviet-era information control, characterizing the measures as temporary. However, normal messaging app access appears unlikely to resume soon, as authorities pursue criminal charges against Telegram’s founder while promoting a government-supported alternative called MAX.

Russian users have shown reluctance to adopt MAX, with Belykh reporting only 2-3% of his clients using the platform. Both Kukovinets and the restaurant manager indicated 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,” Kukovinets concluded.