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AWS in Russia

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Main article: Amazon Web Services (AWS)

2024

Roskomnadzor blocked AWS services in Russia due to violation of the landing law

On April 15, 2024, the Federal Service for Supervision of Communications, Information Technology and Mass Media (Roskomnadzor) blocked the Amazon Web Services (AWS ) website and began restricting access to the cloud services of the American company.

According to RBC, citing materials from Roskomnadzor, AWS blocking is associated with non-compliance with the landing law, which obliges large foreign IT companies with a daily audience in Russia of 500 thousand people to create full-fledged representative offices (branches) in Russia, register a personal account on the Roskomnadzor website and place an electronic form on its resource for feedback with Russian citizens or organizations. Otherwise, a number of "coercion measures" are provided for in relation to these companies, up to complete blocking in Russia. As of April 16, 2024, 26 foreign companies were included in the list for "landing" by Roskomnadzor.

When trying to open the AWS site from a Russian IP address, error 404 occurs - it does not open. According to CNews, the resource is unavailable when connected to the Internet through at least Beeline (wired and mobile Internet), MTS (mobile Internet), Dom.Ru (wired Internet) and Tele2 (mobile Internet).

Roskomnadzor blocked Amazon cloud services

As Vedomosti writes with reference to a source in one of the cloud providers, if sites or domains used by users from the Russian Federation are located on AWS services, then these resources are at risk. Blocking services will lead to inaccessibility of sites and domains, it will be necessary to reconfigure sites to the resources of other hosting providers or replace DNS servers for domains, the interlocutor explained. Selectel believes that blocking AWS will stimulate Russian companies to switch to local hosting providers[1].

Shutdown of cloud services in Russia due to US sanctions

On March 15, 2024, it became known that Microsoft and Amazon were closing access to cloud services for organizations in Russia. Restrictions are introduced within the framework of the 12th package of sanctions against Russia, which prohibits the supply of software for business analytics, customer relationship management (CRM) to the Russian Federation, etc. Read more here.

Reverse penalty for violation of landing law

In January 2024, a Moscow court imposed negotiable fines on 11 hosting companies totaling 367.5 million rubles for refusing to open representative offices in Russia. Read more here.

2023: Inclusion by Roskomnadzor in the list of foreign companies subject to "landing"

Roskomnadzor expanded the list of foreign companies subject to "landing," adding Amazon Web Services, Inc. The following companies were also included in the list:

  • Hetzner Online GmbH (hetzner.com);
  • Network Solutions, LLC (networksolutions.com);
  • WPEngine, Inc. (wpengine.com);
  • HostGator.com, LLC (hostgator.com);
  • Ionos Inc. (ionos.com);
  • DreamHost, LLC (dreamhost.com);
  • FastComet, Inc. (fastcomet.com);
  • DigitalOcean, LLC (digitalocean.com);
  • Kamatera Inc. (kamatera.com);
  • Bluehost Inc. (bluehost.com);
  • GoDaddy.com LLC (godaddy.com).

According to the law in force by June 2023, foreign Internet companies with a daily audience of over 500 thousand users must open representative offices in Russia. They are also required to register a personal account on the Roskomnadzor website for interaction with authorities and post a form on their website for feedback from Russian users.

Roskomnadzor expanded the list of foreign companies subject to "landing"

However, the companies included in this list by June 23, 2023 do not conduct any active activity in Russia, said Karen Ghazaryan, director of the Institute for Internet Research. Since the beginning of 2022, they have not had much interest in working in the Russian market, so any changes in their work are unlikely to follow, he says.

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For Russian users, these companies until 2022 were the main ones in this segment, now, in the context of import substitution, Yandex, Sber, VK and other companies developing cloud services came to the fore, the expert said in a conversation with Vedomosti.
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Our industry is "mature," there is something to offer, there is something to choose from, the quality is sufficient for services. Yes, you can raise AWS to heaven or talk about a huge community and WP modules, but in general, we can solve problems with domestic services, "added Zaur Abasmirzoev, general director of the developer of the Russian web server Angie.[2]
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2022: Termination of registration of new customers in Russia and Belarus

On March 8, 2022, Amazon announced the termination of registration of new Amazon Web Services customers in Russia and Belarus. Thus, another American technology company limited work in the Russian Federation after the start of the Russian special operation in Ukraine.

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Unlike other technology companies in the US, AWS does not have data centers, infrastructure or offices in Russia. We have a long-standing policy of not doing business with the Russian government, "AWS said in a blog post.
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Amazon cloud platform bans registration of new customers from Russia

The company added that AWS provided services to a number of companies operating in Russia, usually subsidiaries with headquarters outside the country of corporations. What is the share of income in Russia in the total revenue of AWS, not reported.

AWS did not have so-called Local Zones in Russia. This is a type of infrastructure designed to perform operations that require a delay of ten milliseconds (such as video rendering, developers accessing databases, intensive use of graphics in applications for virtual desktops, etc.). To do this, AWS places computing resources, information storage, databases and other services in cities with a large population, near large industrial centers, that is, in those areas where data traffic is high.

Earlier, the Ukrainian authorities asked Amazon to suspend all its cloud services in Russia.

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The suspension of AWS services in the Russian Federation will support the global united movement of many governments and companies that have chosen long-term stability and growth rather than potential temporary profit losses, "Mikhail Fedorov, Minister of Digital Transformation of Ukraine, wrote on his Twitter blog on March 6, 2022[3]
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2020: Full entry into the Russian market

On July 6, 2020, Mail.ru Group announced cooperation with Amazon Web Services (AWS), within which the American company will be able to fully enter the Russian cloud services market.

Mail.ru Cloud Solutions (MCS, part of the Mail.ru Group) and AWS have agreed to jointly launch a hybrid cloud platform for business. Its users will be able to connect simultaneously to the capacities of both Amazon and Mail.ru Group. At the same time, Mail.ru Cloud Solutions will automatically provide a VPN connection between cloud infrastructures.

The integration of Amazon EKS and Mail.ru Cloud Containers (Kubernetes aaS service provided by MCS) will simplify centralized cluster management for users using a hybrid architecture. The use of federation will allow you to evenly distribute the load on the network, as well as minimize delays in data transfer due to the use of the cluster closest to the client.

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We are talking about a solution when Kubernetes services are placed in the Mail.ru and AWS clouds independently, but will be able to work in federated mode and provide load distribution, fault tolerance between these clusters, - explained TAdviser in the Mail.ru Group. - Customers need to have separate accounts both in the AWS cloud and in the Mail.ru cloud and pay for services consumed.
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Resources in clusters are synchronized, and auto-configuration of DNS servers allows you to balance the load for the backend of all clusters. This minimizes the risk of common cluster failure and increases infrastructure availability. If at some point a cluster in one region is unavailable, traffic will be redirected to another to avoid disruption.

The new solution allows Russian and international companies operating in to Russia automatically deploy federated clusters Kubernetes simultaneously at the facilities of Amazon Web Services (AWS) and MCS. One of the customers who has already started testing this MCS service is Vizor Interactive.

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The solution is designed for a certain group of customers operating in several markets. Automation of the creation of a hybrid cloud allows developers to implement fast and simultaneous launch of products in both the Russian and global markets, explained TAdviserv Mail.ru Group.
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The company expects that partnership with MCS will help global AWS customers freely enter the Russian market, while complying with all the requirements of local legislation, and Russian MCS customers will have the opportunity to quickly scale in foreign markets.[4]

Yuri Novikov, head of cloud technology development at Softline, believes that the Russian cloud market can be called highly competitive: many small hosters, internal clouds, large local players, global clouds, etc. None of them yet occupies a share of more than 10%, which indicates great fragmentation and high competition, he points out. Last year, since the acquisition of MTS"" and Rostelecom"" large providers, a trend towards market consolidation began and, apparently, other similar purchases and combinations should be expected in the near future.

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AWS was in the market and before partnering with Mail.ru. Providing the best cloud solutions in its segment, it is quite common and in demand. Along with Microsoft and Google, AWS holds a confident lead in the world's top three cloud service providers. Strengthening its presence and partner projects should give the market more transparency in the use of global clouds and more opportunities for Russian customers, who are sometimes afraid to resort to using foreign cloud services, and sometimes limited by the current law and, if personal data of Russian citizens are processed, cannot use them, Novikov said in a conversation with TAdviser.
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Softline does not plan to compete with AWS, Yuri Novikov added. The company complements the products of global players with the services necessary for customers.

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Our company is a partner of almost all global cloud providers and offers a range of services for global clouds in Russia and the world - from those support to Managed Cloud Governance solutions, when we take care of the entire customer's cloud infrastructure in the main global clouds (AWS, GCP, Azure), in local (Softline Cloud) and in private - from centralized billing and a single management console, to optimization of use and security, says Novikov.
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2017: Amazon increases the cost of services in Russia

From January 1, 2017, the cost of Amazon services will increase in Russia. Users who are not individual entrepreneurs or legal entities will pay another 18% VAT for using the Amazon Web Services (AWS) cloud platform.

In Russia, from January 1, 2017, individuals, in addition to the cost of using Amazon Web Services (AWS) cloud storage, will pay VAT in the amount of 18%. AWC or AWS Marketplace customers who are individual entrepreneurs or legal entities will have to confirm their status by December 31, 2016 by submitting data on the main state registration number (OGRN) or the main state registration number of an individual entrepreneur (OGRNIP).

Amazon's letter to users states: "If you do not provide information by December 31, 2016, AWS will be forced to charge VAT at an 18% rate on relevant services. You will always have the opportunity to enter information after the specified date. In this case, after making changes and receiving our confirmation message, you can request a refund of VAT paid after January 1, 2017 for each account under which the relevant information is entered to Customer Support. "

See also: 244-FZ "Google Tax"

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