Internet Blocking: How Do They Threaten Business in Russia?

Contents:

• The History of the Ban on Public DNS Servers in Russia
• How Do VPN Blocks Affect Users' Work?
• Who Is Not at Risk from VPN Restrictions?
• How Can Internet Blocks Affect Small and Medium Businesses?
• Prospects for Russian Companies in the New Internet Reality

The history of the ban on public DNS servers in Russia

On September 8, 2021, a significant event in the field of internet security occurred: Rostelecom proposed to ban the use of public DNS servers, such as Google and Cloudflare, and Also, the DNS over HTTPS (DoH) protocol is being considered. This protocol ensures user anonymity by hiding their DNS requests from internet service providers. Such a ban could hinder access to information and make website blocking more effective, raising concerns among users seeking to maintain their online privacy.

Google's public DNS servers are widely used by Russian companies across a variety of industries, including mobile app development and retail equipment management. A potential ban on these servers could have serious business implications, as many systems could lose functionality. Given the importance of stable DNS servers for business continuity, companies should consider alternative solutions and prepare for potential infrastructure changes.

Philip Kulin, internet expert and author of the Telegram channel "Esher II," emphasizes the importance of public DNS servers, which are easy to configure and widely used in various industries. If only unencrypted DNS is blocked, the impact could be less noticeable. However, blocking encrypted DNS will cause serious problems affecting a large number of users, including not only those using Android apps but also anyone who relies on a secure and stable internet connection.

Alexander Shvedov, CTO of the transfer booking service i'way, warns of the consequences of completely blocking DNS servers. This could lead to significant difficulties accessing internet resources. Users can enter website addresses, but the pages simply won't load. This situation will create problems for both large and small businesses that rely on online services. It is important to understand that internet access is a key factor for successful work in modern business.

On September 15, 2021, the GlobalCheck project, which monitors Internet blocking reported problems accessing Google Docs for users of telecom operators such as MTS, MegaFon, and Rostelecom. Roskomsvoboda later recorded similar outages for Tele2 subscribers. Although media outlets speculated that these problems could be related to the service being blocked, Roskomnadzor refuted this information, confirming that Google Docs continues to function in Russia. These events highlight the importance of monitoring internet access and the relevance of issues related to resource blocking in the country.

Google Docs is a free and effective tool that allows multiple users to simultaneously edit documents in real time. Many companies, according to Kulin, use Google Docs for collaborative work, including drafting contracts and maintaining shift schedules. Blocking this service could have a serious impact on a variety of businesses, from small hair salons to large manufacturing enterprises. Despite the availability of alternatives for official document management, Google Docs remains a key tool for teamwork and collaboration.

How do VPN blocks affect users' work?

In September 2021, Roskomnadzor took measures to restrict the operation of six well-known VPN services, including major players such as ExpressVPN, NordVPN, and IPVanish. This decision was based on the fact that the use of these services allows one to bypass blocks on prohibited resources and complicates monitoring compliance with laws in the sphere of online activity. The restrictions affect not only users but also the VPN infrastructure itself, which highlights the authorities' efforts to ensure information security and compliance with laws online.

Following the introduction of the blocks, the Mart communications provider, operating in the Pskov region, reported problems encountered by its subscribers. These problems concern access to popular platforms such as Avito, as well as the online games World of Tanks and World of Warships. Company representatives noted that the disruptions were caused by Roskomnadzor's efforts to block certain VPN services. This has led to complications in the operation of Internet services and limited access to resources that were previously available to users without restrictions.

The developers of the World of Warships game reported that during The blocking affected multiple UDP ports necessary for the game's proper functioning. This negatively impacted user authorization and led to frequent disconnections from gameplay. It is important to note that resolving this issue is critical to ensuring a stable game and a high-quality gaming experience for all participants.

Wargaming announced its intention to compensate all players who encountered these issues. In response, Roskomnadzor confirmed that the UDP ports in question were not blocked during the blocking. This statement may impact future interactions between players and the company, as well as access to game servers.

Users of the FlashScore app, which provides up-to-date sports scores, experienced outages for five days. The service's developers reported that they were actively working to resolve the issues, and according to them, all problems have already been resolved. Now users can once again receive timely updates on sporting events without delays.

Who is not at risk from VPN restrictions?

Amid increased internet control in Russia, blocking VPN services does not affect those organizations that use them as part of "continuous technological processes." According to Roskomnadzor data for June 2021, 130 Russian companies and about 200 different processes were included in the so-called whitelists. This indicates that enterprises that ensure critical technological operations have the opportunity to continue using VPNs to protect their data and optimize their work.

The core interests of large companies are protected first and foremost, since disruptions to their operations can have serious consequences. In August 2021, the Bank of Russia sent letters to financial institutions asking for information about the VPN services they use and their purpose. In most cases, banks use VPNs to ensure the security of their internal systems, especially when employees work remotely. Using a VPN helps protect confidential data and prevent unauthorized access, which is especially important in the financial sector.

According to expert Kulin, this technology is actively used in cash registers and ATMs. A representative of the Central Bank emphasized that the primary objective of the appeal to banks is to prevent operational security breaches, especially given the blocking of foreign VPN services in Russia. The implementation of this technology is aimed at ensuring the stability of financial transactions and protecting against potential risks associated with changes in legislation and the technological environment.

By September 2021, Roskomnadzor had received requests from 64 industry organizations to whitelist approximately 100 IP addresses. While there is no detailed information on the whitelisting process, it is clear that companies can protect their interests through relevant industry associations. Importantly, whitelisting IP addresses can improve access to resources and ensure the stability of organizations in the face of tightening internet regulation.

How can internet blocking affect small and medium-sized businesses?

Internet blocking is a significant threat to small and medium-sized businesses in Russia. Research conducted by Skillbox Media shows that many entrepreneurs do not understand the scale of the problem until they are forced to seek alternatives to blocked services. This can cause unexpected disruptions to business operations and lead to a loss of customers. In a constantly changing internet environment, it's important to prepare for potential blockages in advance to minimize risks and ensure business stability. Tatyana Martynova, an entrepreneur who launched candle-making courses during the pandemic, emphasizes that using Google Docs to store training materials leaves her business vulnerable. She notes that a potential platform block could seriously disrupt normal processes. While small companies can quickly adapt to changes, the time required to transition to alternative solutions can be significant and negatively impact business. Renat Saifutdinov, an expert at CROC Cloud Services, notes that adapting to new services can present certain difficulties, as not all users will be comfortable using the new interface. This underscores the importance of proactively choosing alternative solutions to avoid problems during the transition to new technologies. An optimal approach to implementing updates and the ability to choose convenient tools will help users more easily cope with changes and improve their satisfaction with services.

i'way, a company that organizes transportation for business travelers, is facing issues related to its reliance on public DNS. Technical Director Alexander Shvedov emphasizes that outages are rare, but the company's internal resources depend on services such as Google and Cloudflare. He warns that after blocking, providers may begin monitoring traffic, leading to a decrease in data exchange speeds. It is important to note that to ensure stable operation and minimize risks, it is necessary to consider alternative solutions and implement additional measures to improve system reliability.

Blocking services can be an unexpected problem for businesses. Evgeny Tsarev, CEO of RTM Group, notes that Roskomnadzor can restrict access to various services at any time without prior notice. This creates uncertainty for businesses, which must be prepared for such sudden changes. It is important for entrepreneurs to have a strategy for responding to such situations in order to minimize risks and ensure the stability of their operations.

The Kemerovo company Wachanga, which has created nine mobile applications, is facing problems related to Dependence on foreign technologies. CEO Maxim Kolpakov emphasizes that potential disruptions in foreign solutions can slow down the development process and have a negative impact on users. This underscores the importance of switching to domestic technologies to ensure service stability and quality.

Expert Renat Saifutdinov emphasizes that, despite the availability of approximately 300 VPN services on Google Play and the App Store, the choice of Russian DNS server alternatives remains limited. He notes that, in the event of severe blocking, this can lead to failures in client applications. In the context of tightening internet censorship and increasing blocking, it is important for users to have access to reliable tools to bypass restrictions.

Oleg Elmanov, partner at EILab, emphasized that their organization switched to paid services and Russian equivalents in advance. This decision allowed them to avoid numerous risks. He noted that client data is currently stored in Russia. However, entering the international market requires the use of VPNs and other technologies to ensure the security and privacy of information.

Digital technology expert Philipp Kulin notes that dependence on large Western vendors is undesirable. However, in practice, Western services continue to hold dominant positions in the market. This underscores the importance of increasing independence and developing local alternatives to minimize the influence of global players on the digital ecosystem.

Prospects for Russian Companies in the New Internet Reality

Amid growing risks associated with internet restrictions, Russian companies outsourcing and exporting goods to Western markets may face the need to change jurisdictions. Internet technology expert Philipp Kulin emphasizes that many of these companies will seek freer and less regulated jurisdictions in which to conduct business. This will allow them to minimize risks and ensure sustainable development in a changing business environment. Selecting the right jurisdiction is becoming a key factor for successful operations in the international arena.

Companies targeting the domestic market face significant challenges. As an internet expert notes, "you can't escape from a submarine," emphasizing the importance of adapting to changing conditions. In the face of economic instability and shifting consumer preferences, it is necessary to develop strategies that effectively respond to new realities. Adaptation and flexibility will be key factors for success in this situation.

Renat Saifutdinov, head of the client support group at CROC Cloud Services, emphasizes the importance of preparing Russian enterprises for protection Data security in the context of the "Sovereign Internet" implementation. Frequent blocking may make traditional tools such as VPNs and DNS difficult to use. Therefore, businesses should develop alternative solutions to ensure information security and availability in advance. Preparing for such changes will minimize risks and maintain control over data. Saifutdinov recommends implementing corporate VPN services, intranets, and file-sharing services. These solutions not only reduce the risk of blocking but also guarantee protection against confidential information leaks that may occur when using free services. Using such tools allows organizations to ensure a high level of data security and communication reliability, which is critical in the face of modern cyber threats. Albert Li, a radio engineer and founder of Sakh.com, the largest internet portal on Sakhalin, warns of the possible consequences of the Russian internet's transition to a model similar to the Chinese one. He emphasizes that the lack of international competition may provide certain advantages for domestic resources, but this will lead to limited growth and development. Albert Lee emphasizes the importance of maintaining an open internet to foster innovation and improve service quality.

In 2019, Sakh.com's revenue reached approximately 90 million rubles. However, the portal's founder, Lee, expresses pessimism about the future of his resource in the face of increasing internet censorship. He notes that federal resources will increasingly exert pressure on regional ones, significantly reducing the chances of development for platforms like his. This highlights the current challenges that businesses face in today's environment.