What changed
Russian enterprise software companies reported strong growth in Q1 2026 as import substitution policies and Western sanctions pushed domestic adoption of locally built ERP, CRM, and cloud platforms.
Companies like Astra Linux, MyOffice, and 1C expanded their enterprise customer base significantly, while Yandex Cloud grew its infrastructure capacity to serve government and financial sector clients.
Why it matters
The forced decoupling from Western technology stacks is creating a parallel ecosystem that may become competitive in non-Western markets over time.
Moscow Exchange-listed tech stocks have outperformed the broader MOEX index, driven by revenue growth and reduced competition from departed Western vendors.
What to watch next
The Russian government's next technology budget cycle will likely increase subsidies for AI research, domestic semiconductor design, and quantum computing initiatives.
Sanctions created constraints, but they also created a captive market — and Russian tech is learning to build inside it.