Systemic crisis in Russia: IT industry loses specialists and access to technologies

The Russian IT sector, amid sanctions, has lost access to Western technologies, which is why it is experiencing a systemic crisis.

This was reported by the Foreign Intelligence Service of Ukraine.

Over the past three years, more than 20,000 IT specialists have left the Russian Federation. There is almost no return of personnel – about 300 people return each year.

Previously, foreign IT personnel provided up to 20% of the personnel growth in Russian companies. In 2024, this figure dropped to a critical 0.4%.

Employee attrition leads to industry degradation. Companies are forced to replace experts with internal reserves, which often do not meet the requirements.

“In parallel with the personnel crisis, repressive pressure is intensifying. The Moscow City Court sentenced former Yandex programmer Sergey Iryn to 15 years in prison for transferring $500 to the Ukrainian fund “Return Alive”, accusing him of high treason. Such cases create an atmosphere of fear among the IT community,” the SZRU noted.

The intelligence agency notes that against the backdrop of sanctions isolation, loss of access to Western technologies, and growing cyber threats, the Russian IT industry has found itself in structural decline.

Recall that the growth of the Russian economy is slowing, oil revenues are falling, the budget deficit has reached its highest level in three decades, and inflation and interest rates remain high.

As reported, according to a preliminary estimate by the Russian Ministry of Finance, the federal budget deficit increased by 1.2 trillion rubles in July and reached 4.9 trillion rubles in the first seven months . This is significantly more than the 3.8 trillion rubles planned for the entire year.

In addition, due to the rapid decline in oil and gas revenues and rising costs, the Russian government will make changes to the budget for the second time in a year.