The number of foreign companies registering their businesses in the first half of 2025 was reportedly nearly double the total for 2024

The number of foreign IT companies applying to register their businesses in Russia surged sharply in the first half of 2025, with Asian firms leading the charge, Kommersant reported on Tuesday, citing research compiled by Kokoc Group.

According to the data, around 3,000 foreign registration applications were filed in the first six months of the current year, compared to some 1,650 in all of 2024. India reportedly topped the list with more than 1,000 applications, followed by China with over 800, and Türkiye with around 150. IT firms from Africa and Persian Gulf nations are also increasingly seeking entry into the Russian market.

Industry experts interviewed by the business daily attributed the surge to relatively low competition in Russia's large consumer market, rising demand for local IT solutions, and a shortage of Western software amid ongoing geopolitical shifts. Analysts also highlighted the crucial role of the growing digitalization of government services and business sectors.

Foreign firms mainly target niches such as cybersecurity, cloud platforms, fintech, artificial intelligence, industrial enterprise resource planning (ERP) and customer relationship management (CRM) systems, Kommersant noted.

Each country reportedly tends to focus on its traditional strengths, with China applying to register firms operating in telecommunications and fintech, and India targeting outsourcing and software development.

Natalya Vozyanova, head of Asian client relations at the consulting firm TeDo, confirmed to the news outlet that there had been a notable rise in Chinese applications, adding that around 9,000 Chinese companies, primarily focused on the IT, technology, and engineering sectors, are currently registered in Russia.

Interest from friendly foreign nations in the Russian IT market was evident, according to Kristina Kovalenko, CEO of Fork-Tech, who highlighted that Chinese developers find the Russian market largely untapped with respect to related hardware manufacturing.

At the same time, Russian companies could face increased competition, possible price dumping, and talent migration, especially in high-margin areas, Mikhail Pryshlyak, Commercial Director of MD Audit, told Kommersant. He noted, however, that the new players could also stimulate partnerships, local integration, and demand for advanced IT services including security, DevOps, and support.

Oleg Sazhin, advisor to the CEO of Content AI, noted that foreign companies are expected to face "their own difficulties" when entering the Russian market. These include lingering distrust among local customers towards new overseas suppliers following the exit of Western vendors, as well as strict government requirements to only use software from the country's official registry.

(RT.com)