Page 118 - RusRPTDec23

Roskomnadzor requires foreign internet-based services to localize databases of Russian users as of July 1, 2021, and Russian courts previously fined Google 15 million rubles in June 2022 for failing to adhere to this law.
The Russian government has previously fined Russian internet giant Yandex for also failing to adhere to Russian laws regarding disclosing users’ personal data to the government, likely forcing Yandex to split its Russian entity from its international entity to adhere to Russian laws and allowing the Russian government to exercise increased control and surveillance over Russians’ usage of Yandex.
The Russian government previously banned certain Western social media sites and demanded that Google remove “false information” about the Russian war in Ukraine in early 2022. The Russian government likely aims to force Russians to utilize search engines and other internet services of Russian companies that the government can control better than international entities like Google.
9.2.8 Telecoms corporate news
The net profit of Russian state-controlled telecom operator Rostelecom increased 58% on the year to 13.6bn rubles in July–September, as calculated under International Financial Reporting Standards (IFRS), the company said on November 9 in a statement. Revenue rose 14% to 173.9bn rubles. Operating income before depreciation and amortization (OIBDA) climbed 23% to 74.2bn rubles, and the OIBDA margin added 3.1 percentage points to 42.6%. Free cash flow fell to 10.6bn rubles from 32.5bn rubles in the same period of 2022. In January–September, the net profit rose 29% to 40.5bn rubles. Revenue increased 14% to 498.5bn rubles. OIBDA mounted 13% to 209.3bn rubles, and the OIBDA margin lost 0.5 percentage points to 42%. Free cash flow advanced 77% to 84.2bn rubles.
Russian state-controlled telecom operator Rostelecom announced an 11% increase in its net profit for the year 2022, as per the International Financial Reporting Standards (IFRS). The company reported a net profit of 35bn rubles. In addition to the rise in net profit, Rostelecom also saw an 8% increase in revenue, totaling 627bn rubles for the year. Operating income before depreciation and amortization (OIBDA) showed significant growth, increasing by 15% to reach 251bn rubles. The company's free cash flow also advanced, surging by 39% to 45.2bn rubles. Capital expenditures, on the other hand, decreased by 21% to 116.9bn rubles. Rostelecom's President, Mikhail Oseyevsky, attributed the positive financial results to the company's mobile business, which played a pivotal role in driving growth. The subscriber base expanded to 48.1mn in 2022, compared to 47.5mn in the previous year. These financial indicators reflect Rostelecom's strong performance in the
118 RUSSIA Country Report December 2023 www.intellinews.com