Russian authorities promise to support IT amid the flight of specialists abroad

Russian authorities promise to support IT amid the flight of specialists abroad

Russian authorities promise to support IT amid the flight of specialists abroad
Ministry for Digital Development, Communications and Mass Media of the Russian Federation announced plans to expand support for digital industry.  Against the backdrop of the mass movement of IT specialists abroad, the Ministry of Digital Development announces plans to allocate grants, establish tax and credit benefits for employees and enterprises.  At the same time, as the head of the ministry Maksut Shadayev stated, it may take several years to completely replace software products in the oil and gas, graphics and engineering businesses.

At the same time, RAEC's forecasts are disappointing.  According to the association, up to 100,000 specialists employed in the IT sector may leave Russia in April.  And although the measures proposed by officials are unprecedented, experts doubt that the planned events will be enough to stop the "flight of IT people" in the short term.

According to the head of the RAEC Sergey Plugotarenko, up to 70 thousand people have already left the country.  Many who intend to leave Russia are currently being held back by the high cost of transport, the problem of bank payments due to sanctions and the search for housing.  However, these circumstances are temporary.  Already in April, the situation may cause another wave of migration of IT specialists.
At a meeting in the profile committee of the State Duma, where representatives of the department were invited to discuss the consequences of sanctions, Shadayev announced ten areas of work developed to support the industry.
However, the minister acknowledged that in some areas the country is far behind Western developments and normal “import substitution” is unlikely to happen in the near future.  Multibillion-dollar investments in the industry may be required so that the economy (primarily the transport, industrial or energy sectors) can abandon the products of SAP or Oracle companies, moving to work with domestic counterparts.

Experts say the decision to abolish income tax for e-commerce and digital education is clearly not enough for the industry to cope with losses.  The Kommersant online media refers to the forecast of further market decline made by Dmitry Zakharov, who heads the Moscow Digital School.
In his opinion, the sharp shutdown of the leading advertising channels and the general decline in purchasing power caused by the devaluation of the national currency does not contribute to the formation of plans for long-term educational programs.
The situation in the field of e-commerce is not much better. According to the press service of Ozon, targeted support measures are not currently used.  There is hope that the situation will change for the better tax incentives, but it is still premature to make any forecasts now.

24.03.2022