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If these companies do not open offices in Russia on time, they face a ban on advertising, accepting payments, as well as bandwidth restrictions or complete blocking.
Representatives of Viber in the comments to RBC have already expressed their readiness to cooperate with the authorities of the Russian Federation. Google has long had an office in Russia.
The Landing Law was passed in the summer of 2020. It obliges IT companies with a daily audience of more than 500,000 Russians to open offices in the country and register on the Roskomnadzor website for feedback.
In May, State Duma deputy Alexander Khinshtein promised to additionally "land" the Wikipedia encyclopedia, Amazon, AliExpress, IKEA and Iherb stores, as well as the Cloudflare IT company. During the elections to the State Duma, the Russian authorities have already tested the possibility of mass blocking of Cloudflare's DNS services that affected Twitter in particular.
X5 Retail Group loses e-grocery leadership in 3Q21. InfoLine has published its 3Q21 ranking for the largest e-groceries. X5 Group lost the leadership for the first time and moved down to third place (12.7% share), behind Sbermarket (16.1%) and Vkusvill (12.9%).
In 3Q21, X5 Group’s online turnover surged 2.6x y/y, accounting for 2.0% of its total turnover (3.6% in Moscow). The company started in the stock-up mission with Vprok.ru, that comprised 39% of its online turnover in 3Q21, while the pace of growth slowed to 48% y/y in the period. In the express mission, X5 Group was behind the pioneering Samokat (#4 spot; with a 12% share in 3Q21) and Yandex.lavka (#5; 8%), largely delivering from existing convenience outlets. The service already represented 52% of online turnover for X5 Group in 3Q21 and sales surged 4.8x y/y to RUB5.5bn in 3Q21, while the low focus on establishing dark stores and incremental pressure on offline outlets raises questions, in our view.
Online food retailing is the most rapidly developing segment of e-commerce in Russia and is set to increase 2.5x to RUB380bn in 2021, according to InfoLine. In our X5 Group model, the channel advances with a 2021-25F CAGR of 70% and reaches turnover of RUB227bn by 2025F. In its latest strategy, the company has cooled its
125 RUSSIA Country Report December 2021 www.intellinews.com