The sector of ICT includes the organizations performing activity in the field of:
- telecommunications (see Communication (the market of Russia)),
- equipment manufacturing (see Production of the ICT equipment in Russia),
- wholesale by the goods connected with information and communication technologies (further — ICT),
- rendering information and telecommunication services (see IT market of Russia).
The systemically important IT companies and telecom operators in Russia
The systemically important organizations are large corporations and holdings which contribute significantly to development of national economy. Inclusion in the list of backbone opens to the enterprise access to preferential crediting and the state guarantees according to investment projects, refinancing of debts, etc.
Financial performance of the ICT industry of Russia failed for 35%. To a meeting with Putin support measures are developed
On May 15, 2020 sent to the Ministry of Telecom and Mass Communications to the government the information and reference materials about measures of support of the ICT industry prepared for a meeting with the president Vladimir Putin.
On May 18, 2020 the Ministry of Telecom and Mass Communications also prepared and sent to the Ministry of Economic Development of the offer in the national action plan on normalization of business life, recovery of employment, the income of citizens and growth of economy in the conditions of step-by-step canceling of the restrictions connected with spread of a new koronavirusny infection.
Both letters were signed by the deputy minister Maxim Parshin. TAdviser studied documents and retells their contents.
Deterioration in a financial status of the ICT industry
Being based on the data of the Central bank, the Ministry of Telecom and Mass Communications draws the attention of the government to a deviation of volume of incoming payments of the ICT companies from "normal" level down in four non-working weeks from March 30 to April 24. Indicators are as follows:
- in the field of telecommunications:-35.3%;
- in development computer software (SOFTWARE), to consulting services in the field and to other related services:-34.8%;
- in information technology field:-26.9%;
- in production of computers, electronic and optical products:-23.6%.
Also the Ministry of Telecom and Mass Communications notes those results in which in the medium term will result effects of the crisis which developed because of a pandemic.
The non-working days announced in Russia during the period from March 30 to May 11 and reduction of the Russian market of software for 30% will lead to loss of opportunities for digital transformation of the Russian industries, consider in the Ministry of Telecom and Mass Communications. Reduction of staff in the IT companies up to 50% and termination of implementable contracts in 10-20% of cases will cause decline in quality of the services provided in a digital remote format.
Non-payments for work of the companies within 50% of contracts and growth of traffic on communication networks for 54-80% will lead, according to the ministry, to decrease in rates of software development and development of digital infrastructure.
The emergency costs of telecom operators in the amount of the annual volume of planned investments and emergence in them of additional (free) social obligations and costs will conceive the effect impossibility of investment by these companies of own means into development of communication networks and infrastructure.
Necessary ICT industries of a measure of support
Divides the measures of support of the Ministry of Telecom and Mass Communications requested for the ICT industry into anti-recessionary and system.
The ministry carries to crisis response measures of support of the IT industry:
- canceling until the end of 2020 of payment of insurance premiums for the wage fund (WF);
- a delay until the end of 2020 of payment of a tax on income of individuals (PIT);
- grant support through institutes of development of developers of software solutions and also subsidizing of demand;
- start of the program of preferential crediting of the IT organizations;
- decrease until the end of 2020 of a VAT rate to 0 percent for services of online education, telemedicine and delivery services of food.
Department ranks as system measures of support of the IT industry:
- decrease in an upper level of income tax for the IT companies from 20 to 12%;
- canceling of a value added tax (VAT) for services in development and modification of the software and databases and also on providing access to them;
- distribution of a preferential rate of insurance premiums (14%) for wage fund on a number of the IT organizations;
- ensuring implementation of legally significant actions using the cloud qualified electronic signature.
By crisis response measures of support of the communications industry of the Ministry of Telecom and Mass Communications designates:
- a delay until the end of 2020 on taxes and fees for telecom operators;
- rent vacation until the end of 2020;
- suspension for 1 year of regulation about annual 15% increase in capacity of the technical means of information storage (TMIS);
- simplification of the procedure of import of radio-electronic means (distribution zone) and high-frequency devices;
- canceling until the end of 2020 of an obligatory re-registration of the distribution zone in connection with renewal of licenses.
As a system measure of support of the communications industry the ministry notes:
- providing an exit of telecom operators and data processing centers on wholesale market of the electric power.
The ministry lists the same measures also in the offers sent on May 18 to the Ministry of Economic Development in the national action plan. However these offers included 16 more additional measures taking into account solutions taken at the meeting which took place on May 15, 2020 under the leadership of the Deputy Prime Minister Andrey Belousov.
For the IT industry such additional measures of support as were provided:
- VAT preferential tax treatment on operations on export of solutions in the field of ICT;
- Taxation of the profit got by foreign tax residents from rendering "digital services" in the Russian Federation;
- Introduction of function of the tax agent for the foreign companies paying remunerations to the Russian individuals;
- Reduction in cost of duty-free importation of the goods purchased in foreign online stores;
- Release of the Russian taxpayers from income tax concerning the income received from foreign sources as a result of implementation of activity in the field of IT;
- Refining of a tax regime of income of individuals, being tax residents of the Russian Federation, regarding establishment of the tax status of the individual which excludes taxation of income from foreign sources;
- Addition of the list of the industries most affected in the conditions of deterioration in a situation as a result of spread of a new koronavirusny infection activity in the field of communication based on wire technologies and wireless technologies and activity in the IT sphere.
For telecom operators defined the following additional measures of support:
- Creation of conditions to telecom operators for implementation of providing to citizens on a grant basis communication services on data transmission and providing Internet access in the territory of Russia for use of domestic socially important Internet services;
- Soft loans to telecom operators at the rate are not higher than a refunding rate of the Central Bank of Russia on investment projects on construction and upgrade of a communications infrastructure, accumulation of capacities of data processing centers;
- Providing application of investment tax deduction to telecom operators of the rights for calculation of income tax of the organizations in case of investments into development of a communications infrastructure, including at development of perspective technologies;
- Suspension of account transactions as an obligatory unconditional measure – to make such decisions not automatically, and on analysis results of a financial position of the taxpayer;
- Ensuring non-discriminatory access for telecom operators to an object of the state-owned and municipal property;
- State regulation of the payment levied by economic entities for providing in lease to telecom operators of transmission line towers for ensuring communication;
- Simplification of access for operators for placement of communication networks to objects of all-house property of apartment apartment houses for the purpose of placement of communication networks for providing communication services provision to residents;
- Determination of infrastructure of telecommunication, including the cable sewerage and intra house infrastructure as obligatory during creation and/or reconstruction of apartment houses, establishment of requirements to such infrastructure;
- Refining of requirements to regulations (standards) at construction (repair/reconstruction) automobile and the railroads of federal importance when forming necessary infrastructure of electric power supply systems and communication lines.
Effects died supports of the ICT industry
The Ministry of Telecom and Mass Communications speaks about the following effects in which will result measures of support of the ICT industry:
- 146 thousand created/saved jobs in the IT industry by 2024, 1 million 694 thousand – in economy in general;
- the additional gross value added (VDS) of products of the IT industry in the amount of 1 trillion 276 billion rubles in 2020-2024, economies in general - in the amount of 7 trillion 459 billion rubles.
In addition, the ministry shows how will influence federal revenues and off-budget funds of a measure of support of the IT industry. By their providing in the second half of 2020 federal revenues and off-budget funds will become less for 198.7 billion rubles. In particular due to eases of the IT industry on a value added tax – for 83.7 billion rubles, on income tax – for 0.9 billion rubles, according to the PIT – for 65.1 billion rubles, social contributions – for 49.1 billion rubles.
However in 2024 when providing measures of support of the IT industry a situation it will be already perfect another. Federal revenues and off-budget funds will increase by 344.6 billion rubles. Due to eases of the IT industry on the VAT they still will decrease by 231.7 billion rubles, as well as thanking on income tax - for 4.7 billion rubles, but due to eases according to the PIT and social contributions will increase by 27.5 billion rubles and 41.4 billion rubles respectively.
Project of orders of the president
Suggests to issue measures of support of the ICT industry of the Ministry of Telecom and Mass Communications in the form of orders of the president to a number of departments:
To the Ministry of Finance of the Russian Federation on behalf of Anton Siluanov together with the Ministry of Telecom and Mass Communications to introduce in accordance with the established procedure to the Government of the Russian Federation drafts of the federal laws providing:
1. Canceling of payment of the insurance premiums calculated from payments and other remunerations for benefit of individuals, until the end of 2020 for the organizations included in the list of the accredited companies performing activity in the field of information technologies (further – the IT organizations);
2. Providing to the IT organizations until the end of 2020 of the tax deferral on income of individuals with a grace period of repayment within 3 years);
3. Decrease until the end of 2020 of a tax rate for added value to 0% for services of online education, telemedicine and online services of the product delivery of a power supply.
The Ministry of Telecom and Mass Communications of the Russian Federation on behalf of Maksut Shadayevu together with the Ministry of Finance of the Russian Federation, the Bank of Russia and the ВЭБ.РФ state corporation to make the changes in the passport of the federal draft "Digital Technologies" of the national program "Digital Economy" providing optimization taking into account a current economic environment of the existing instruments of support of the projects on development and deployment of the domestic software providing start in the II quarter 2020 of mechanisms:
1. Issues of soft loans to the IT organizations, including on the purpose ensuring obligation fulfillment under implementable contracts (using the factoring mechanism) and also on a project startup, the domestic IT solutions connected with implementation which are at high readiness;
2. Supports of software developers and demand on implementation of domestic solutions, including in the following areas:
- ensuring social distancing;
- increase in efficiency and stimulation of transition to remote work, study and leisure;
- increase in availability of online employment;
- development of recommendatory and communication services;
- development of services and platforms for rendering services online;
- development of diagnostic systems, condition monitoring of health and vaccination;
- increase in availability of medical care by telemedicine development.
To the Ministry of Finance of the Russian Federation on behalf of Anton Siluanov together with the Ministry of Telecom and Mass Communications of the Russian Federation to introduce in accordance with the established procedure to the Government of the Russian Federation the drafts of federal laws providing in the relation of the telecom operators performing upgrade of communication networks for the purpose of expansion of capacity of communication networks and also the organizations performing activity in the field of provision of services of computing powers:
1. Providing a delay until the end of 2020 on tax payments and to charges (income tax, the property tax of the organizations and land tax, insurance premiums) to the telecom operators and data processing centers performing upgrade of communication networks for the purpose of expansion of capacity of communication networks;
2. Providing until the end of 2020 rent vacation for objects state-owned and municipal property.
To provide to the Ministry of Telecom and Mass Communications of the Russian Federation on behalf of Maksut Shadayev together with the interested federal executive authorities (with introduction in need of drafts of acts into the Government of the Russian Federation) suspension for 1 year of regulation about annual 15 percent increase in the capacity of technical means of information storage set within the order of the Government of the Russian Federation of April 12, 2018 No. 445, and an exception of calculation of capacity of TSNI of video traffic (on condition of the direction of the released funds for investment projects on construction and (or) on upgrade of network infrastructure).
To provide to the Ministry of Telecom and Mass Communications of the Russian Federation on behalf of Maksut Shadayev together with the interested federal executive authorities (with introduction in need of drafts of acts into the Government of the Russian Federation):
1. Simplification of the procedure of import radio-electronic and high-frequency devices by giving in Minpromtorg of Russia of applications for receiving licenses for import of telecommunication equipment – radio-electronic means and high-frequency devices (the distribution zone and VChU) - by the principle of "one window";
2. Prolongation until the end of 2020 of the term of registration of the distribution zone, in a case the lack of change of coordinates of placement and technical characteristics of the distribution zone registered on the basis of permissions to use of radio frequencies which are renewed or prolonged during the special period (the application for a re-registration such should be submitted by the distribution zone no later than 30 days after the end of the special period).
To the Ministry of Finance of the Russian Federation on behalf of Anton Siluanov together with the Ministry of Telecom and Mass Communications of the Russian Federation to introduce in accordance with the established procedure to the Government of the Russian Federation the federal law draft, providing:
1. Reduction in the income tax rate of the organizations from 20 percent up to 12 percent for the IT organizations, having provided an opportunity laws of territorial subjects of the Russian Federation of the reduction in the tax rate which is subject to transfer in budgets of territorial subjects of the Russian Federation to 0 percent;
2. Release of the IT organizations from payment of a tax on added cost of services in software development and databases, to its adaptation and modification (processing) and also on providing access to such software.
To provide to the Ministry of Telecom and Mass Communications of the Russian Federation on behalf of Maksut Shadayev together with the interested federal executive authorities and if necessary to introduce to the Government of the Russian Federation the drafts of acts providing change of the list of types of activity in the IT sphere which implementation by the organization is the basis for providing to it the tax benefits and preferences specified in Subparagraph 1.1 of point 2 of Article 427 and point 6 of Article 259 of the Tax Code of the Russian Federation regarding addition with their types of activity providing provision of services on the basis of cloud computing, services in data analysis and machine learning.
The Ministry of Telecom and Mass Communications of the Russian Federation on behalf of Maksut Shadayev together with the interested federal executive authorities to introduce to the Government of the Russian Federation the draft of the act of carrying out the experiment providing a possibility of implementation by the organizations of legally significant actions, including signing of the contracts, including on the uniform portal of the public and municipal services (functions), when using of the cloud qualified electronic signatures received far off after passing of authorization by means of a unified identification and authentication system and a single biometric system.
To provide to the Ministry of Energy of the Russian Federation on behalf of Adeksandr Novak an exit of the telecom operators and the organizations performing activity in the field of provision of services of computing powers to wholesale market of the electric power, including due to inclusion of network of mobile radio telephone communication in the list of uniform technology indivisible power objects for the purposes of consolidation of energy consuming equipment of networks of mobile radio telephone communication in uniform groups of a point of delivery.
The Ministry of Labor recognized the IT company and telecom operators by continuously operational entities
The days off announced on March 25, 2020 by the president Vladimir Putin in connection with spread of a koronavirusny infection of COVID-19 will not extend to the staff of the IT companies. It follows from the addition to recommendations to workers and employers published by Ministry of Labor on March 27, 2020.
The mode of non-working days, according to the document, does not extend to the workers providing the continuity of a production fabrication cycle in a number of the organizations. Among them continuously operational entities to which, in particular, those which perform activity in the field of information technologies and communication belong.
| ||Employers have the right to define in coordination with workers need of participation of the specific worker for continuous production process, said in the document.|| |
The workers performing a remote operation mode in coordination with the employer have the right to its continuation during operation of the decree of the president of "About the Declaration in the Russian Federation of Non-working Days" with obligatory observance of requirements of the Ministry of Health and Rospotrebnadzor for prevention of a new koronavirusny infection.
2019: The ICT market in Russia reached $47 billion
In 2019 the amount of the Russian market of information and communication technologies reached $47.05 billion that became the greatest result among all countries of Central and Eastern Europe (TsVE), analysts of IDC counted. Read more here.
2017: 1.2 million people, a share in GDP - 2.7% are engaged in the sector of ICT
By data for 2017, 1.2 million people (1.7% of the busy population of Russia) are engaged in the sector, the volume of the gross added value (GAV) is 2211 billion rubles (2.7% of GDP). On a share in GDP the sector is comparable to power supply (2.9% of GDP), is one third lower than agriculture (4.4%), the financial sector (4.2%), twice — constructions (6.4%), in four — mining industry (10.4%).
In the majority of the developed countries the sector of ICT plays significantly more important role — its share in VDS of a business sector in the countries of OECD 1.6 times higher, than in Russia (5.4 and 3.4% respectively). From leaders in this indicator — the Republic of Korea, Sweden, Finland — our country lags behind by 2–3 times.
In 2017 the gain of VDS of the sector of ICT (2.8% in real terms) almost twice exceeded GDP gain (1.6%). The main contribution to positive dynamics of the sector was made by the IT industry, having shown growth by 12%. Exceeded the results of 2016 and the organization rendering other information services (repair of the ICT equipment, maintaining web portals, etc.) or engaged in wholesale by the goods connected with ICT. VDS of production of ICT made only 93.1% of the level of 2016, telecom industry — 99.2%.
Sector of ICT
|Telecommunications||IT industry||Rendering other information services||Production of ICT||Wholesale by the goods connected with ICT|
Number of the organizations,
|one thousand units, on the end of the year||121||18||56||27||4||16|
|one thousand persons.||1220||484||350||165||201||20|
|in % of the total number of busy||1,7||0,7||0,5||0,2||0,3||0,0|
Gross added value
|percentage of GDP||2,7||1,2||0,9||0,1||0,3||0,2|
|in % to previous year (in real terms)||102,8||99,2||112,0||106,3||93,1||101,8|
|It is shipped self-produced goods, executed works, services with own forces, billion rubles.||3382||1842||598||366||527||49|
Source: calculations of Higher School of Economics National Research University according to Rosstat
In industry structure of VDS made by the sector the greatest share belongs to the sector of telecommunications (43%) and the IT industries (33%). Production of ICT provides 12%, wholesale with ICT goods — 8%, about 4% fall on other ICT services.
2014: Orange predicts growth of the market of ICT services in Russia
According to the analytical research Orange Business Services (Oranzh Business Servisez, Orange Business Services) the volume of the Russian market of ICT services in B2B segment in 2014 will be about 635 billion rubles that is 7.4% more, than in 2013.
According to forecasts, the market will show growth on average by 6% and will reach 750 billion rubles by 2017. IT services which annual average growth rate will be 10% against 2% for telecommunication services will be the main driver of market development in three-year perspective. In 2017 the size of the market of IT services in Russia will be 370 billion rub, telecommunication services in the field of B2B - 380 billion rubles.
Telecommunication services will grow due to services of the fixed data transmission. Their growth is expected at the level of 6.3% a year - from 72 billion in 2013 to 92 billion rubles in 2017. Among services of the fixed data transmission the highest growth rates till 2017 will show services:
Among drivers there are market developments of IT services – outsourcing, consulting services and technical support. Outsourcing market in Russia makes only 8%, but will show growth on average by 17% till 2017. Increase in demand for consulting services will average 12% a year.
"The IT market and telecommunication services in the next years will continue to grow. Difficult economic conditions and sanctions do not limit, and change the direction of market development rather — Olivier Quesson, the commercial director of Orange Business Services in Russia and the CIS countries commented. — In the conditions of reduction of IT budgets customers look for cost optimization methods, pay attention to solutions with good payback and high efficiency".
At the end of 2012 the sales amount of the largest participating companies of a ranking "The Russian information and communication technologies"  made 453 billion rubles that is 21.5% more, than according to comparable data for 2011, said in the overview of the market of the information and communication technologies (CT) prepared by RAEX rating agency.
This first deterioration in dynamics of development from the moment of the last economic crisis. In previous years revenue of participants of rating steadily grew: the gain in 2010 made 27.5%, in 2011 — 30.7%. Deceleration of growth rates is caused by the general investment stagnation. In 2012, according to Rosstat, growth of investment volume into non-financial assets was nearly 5.5 times lower, than the previous year. At the same time private business began to approach more economically costs for IT, and the companies with state participation prefer to give orders to the structures. At the same time introduction of the new format of the reporting under state procurements (223-FZ) requiring increase in transparency of regulated purchases has no strong impact on the market yet.
Analyst of RAEX Vartan Hanferyan: "Despite decrease in growth rates of the market, in all considered segments increase in revenue of the IT companies is observed. Market participants connect positive dynamics with complex infrastructure drafts, implementation of business applications and also with the growing popularity of new IT within mobile work, virtualization and cloud computing".
The sector of production of software in which development preferential rates of developers on insurance premiums continue to play a role became the most dynamically developing market segment in 2012. According to RAEX, for 2012 the gain of total income in this direction made 22.7%, and their volume — 37.9 billion rubles. At the same time 24.4 billion rubles were the share of project to software (a gain of 24.9%) and 13.5 billion rubles on ready software (a gain of 18%).
The greatest share of revenue of the IT companies is provided by a segment of services: consulting, integration, support and training generate nearly a half of all revenue of the largest IT companies — 43%. However the gain on this sector in 2012 made only 13% (in 2011 — 26.7%).
2009: Turnover of 1.8 trillion rub, share in GDP of 4.6%
In February, 2010 the director of the department of economy and finance of the Ministry of Telecom and Mass Communications Alexander Narukavnikov reported that turnover of the industry of the information and communication technologies (ICT) in Russia at the end of 2009 made 1.8 trillion rub (growth by 2%). The ICT share in GDP made 4.6%.
Income from communication services in 2009 was 1.3 trillion rub (growth by 6.4%). Thus, on a share of IT market there are 500 billion rubles, 28% of the total amount of revenue of the ICT industry.
Let's remind that in 2008 the ministry expected significant growth in IT market, believing that it will make 32.8%. Execution of this forecast would allow the Russian IT industry to earn 770 billion rubles in comparison with 580 billion rubles in 2008. Upon instead of growth the market showed falling on 80 billion rubles. Thus, in percentage expression in comparison with 2008 recession was about 13.8%.
At the beginning of 2010 the Minister of Communications Igor Shchegolev called the last year's forecast of department "a technical error". He also said that fall of revenues of the IT companies in 2009 in comparison with 2008 was 8%.
At the beginning of February the Ministry of Economic Development gave similar calculation of results of work of the IT industry. By a preliminary estimate of this department the volume of IT market was 496.5 billion rubles, 87% of the level of 2008 in the comparable prices. The Ministry of Economic Development also gave breakdown of this revenue by IT market segments. The most part of size of the market of information technologies, according to the ministry, is made by a segment of hardware - 51.4%. On the market of software tools 20%, are the share of the market of services - 28.6%.
- Communication (market of Russia)
- Market of ICT of Moscow (IT and communication services)
- ICT (world market)