VPN in Russia for business – Putin will punish the IT industry with a deferment from military conscription.

Main points

  • Russia plans to tighten control over business by tracking VPN traffic and introducing paid email for entrepreneurs.
  • Companies that allow VPN traffic risk losing income tax benefits, VAT, and reduced insurance premiums, and their employees may lose deferral from military service.

The Kremlin will severely punish businesses for VPN / Collage by Channel 24, photo by Russian media

The abolition of many benefits and a higher VAT rate have put business in Russia on the brink of survival. Despite this, the authorities plan to increase their control over entrepreneurs by monitoring VPN traffic.

How will Russia punish companies that pass VPN traffic?

Moscow is turning digital control into a source of revenue, writes the SZRU.

The Russian Ministry of Digital Development is promoting an initiative to introduce paid email for entrepreneurs and the self-employed. Thus, under the guise of streamlining business communication, they are creating a communication channel that is actually controlled by the state.

The IT industry has also come under direct pressure. Companies that allow VPN traffic risk being removed from the register of accredited IT organizations , which means losing critical privileges:

  • income tax of 5% instead of the standard 25%;
  • zero VAT;
  • reduced insurance premiums.

Additionally, their employees will be exempt from military conscription.

What indicates problems in the Russian economy?

Russian oil exports are falling, companies are recording huge losses, and the state is working “on wheels” because taxes are almost non-existent. Opposition Russian economist Vyacheslav Shiryayev said this on Channel 24 .

He notes that during 2025, the ruble was experiencing active devaluation, while the dollar was behaving very nervously, and only thanks to massive sales of currency did the Central Bank contain the situation.

In March, the state refused to sell, and immediately the demand for the currency became simply uncontrollable. The rate reached 86 rubles per dollar in over-the-counter trading,
– says Vyacheslav Shiryaev.

According to the economist, the system is currently completely unregulated, and large Russian companies are operating in deep losses. Similar losses are recorded in the energy and logistics sectors. Vyacheslav Shiryaev says that taxes are almost non-existent, and the balances on treasury accounts are minimal.

Money is not flowing into the system, and the state does not have time to put it in treasury accounts to finance April-May. The system is currently running “out of control” and is very vulnerable. Most importantly, even this short-term surge in oil prices does not give the Kremlin any hope that they will solve the problems with the economy as a whole,
– emphasizes the economist.

Business problems in Russia

  • Magnit, one of Russia's largest retailers, has suffered losses of over 22 billion rubles for the first time in 20 years due to expensive loans and customer savings.

  • The financial collapse of the largest retailer is not an accident, but a diagnosis for the entire Russian economy, because Lukoil, Severstal, and Rusal also have similar problems.

  • In 2025, VkusVill closed 286 stores in Russia, reducing the total number by 12.7% to 1,973 points, which is explained by the optimization and acceleration of delivery.

  • The number of stores in Russia has decreased for the first time since 2000 due to rising taxes and increased competition. This applies to all retail outlets – from grocery stores near the house, supermarkets and fruit stands to communication salons and clothing stores.

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