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policy of frugality, according to the report.
RAEC believes that in order to restore the growth rate of Runet in the short term it is necessary to ensure incentive regulation, primarily by minimizing the number of regulatory initiatives that have an ambiguous impact on the industry. Moreover, it is necessary to maintain support of the sector until the full completion of the process of adjustment to the new environment, with a focus on the sectors of Internet advertising and digital content.
"That said, it is impossible to fully return to the ‘pre-crisis’ growth rates without completion of the period of turbulence and stabilization of the macroeconomic situation," according to the RAEC’s report.
Advertising spending in Russia will decline by 26% year on year in 2022,
Kommersant daily reported citing estimates by Group4Media. Previously in June Group4Media expected the ad market to decline by 38%. According to the group's updated forecast spending on TV advertising will decline by 13%, on Internet advertising - by 39%, and on print advertising - by 49%.
Representatives from the state may appear on the boards of directors of Russian IT companies. Such a mechanism for controlling Internet companies is offered by the Center for Strategic Research, Kommersant learned. State representatives on the boards of directors, according to the authors of the initiative, are needed to control foreign investments in IT companies and "significant corporate actions" in order to protect the IT sector from foreign influence. Experts call the idea “the lesser of evils” compared to the bills of Deputy Gorelkin, who proposed limiting the share of foreigners in news aggregators, online cinemas and classifieds. This mechanism was developed as an alternative to the draft laws of Deputy Anton Gorelkin, who proposed limiting the share of foreign capital to 20% in news aggregators, online cinemas and classifieds. According to the CSR, limiting the share of foreigners in the IT sector does not correspond to its “special nature”. The measures proposed by the center, on the contrary, according to the authors of the report, will allow "preserving the investment attractiveness of the Russian IT sector." The CSR report was prepared after Ivan Tavrin's KCG bought Avito from Prosus. The resource was sold cheaper than it could, including because of Gorelkin's bill, reminds Kommersant.
New albums from Western artists that haven’t been added to Russian streaming services’ official libraries due to their labels’ exit from the Russian market have nonetheless been appearing on the services. The outlets RBC, Sobaka, and Rozetked have all noted that popular albums such as Midnights by Taylor Swift, Zeit by Rammstein, Return of the Dream Canteen by Red Hot Chili Peppers, Mr. Morale & the Big Steppers by Kendrick Lamar, The Car by Arctic Monkeys, Renaissance by Beyonce, and Harry’s House by Harry Styles can all be found on the Russian streaming service Zvuk.
143 RUSSIA Country Report January 2023 www.intellinews.com