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Russian FSB Cracks Down on VPNs—IT Companies Risk Losing Tax Breaks and Military Deferments

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Russian flag and the word “RuNet” displayed on a laptop screen are seen in this illustration photo. (Source: Getty Images)
Russian flag and the word “RuNet” displayed on a laptop screen are seen in this illustration photo. (Source: Getty Images)

Russia’s Federal Security Service (FSB) is set to begin monitoring traffic on Russian IT platforms to identify users accessing them via VPNs , The Moscow Times reported on April 1.

It could lead to severe consequences for tech firms that fail to block circumvention tools. Sources familiar with the matter told Russian state media that if the FSB detects such access, it will have the authority to recommend that the Ministry of Digital Development revoke a company’s official IT accreditation.

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This accreditation is a cornerstone of the Russian tech sector, providing significant financial incentives. Loss of status would mean the end of VAT exemptions and a sharp increase in income tax from 5% to 25%.

Furthermore, the stakes for employees are personal—staff at accredited firms currently enjoy deferments from military service and access to specialized IT mortgages. Revoking a firm’s status would immediately expose its workforce to the draft and higher interest rates, according to The Moscow Times.

The Ministry of Digital Development has also drafted government decree that would strip companies of their right to pre-install applications on devices sold in Russia if those apps permit VPN traffic. These measures coincide with a new directive requiring mobile operators to cap monthly data at 15 GB for any traffic identified as originating from a VPN.

This follows a massive surge in censorship activity, with Roskomnadzor reportedly restricting over 400 VPN services in early 2026—a 70% increase compared to the end of last year, The Moscow Times wrote.

While Minister of Digital Development Maksut Shadaev has publicly stated that his department opposes administrative penalties for individual citizens using VPNs, sources suggest the current institutional crackdown is driven primarily by the FSB.

The strategy appears aimed at reducing VPN usage by making circumvention technically difficult and economically risky for service providers. Authorities are also considering removing any service that remains accessible via VPN from the state-approved “white lists” that provide access even during broader internet shutdowns.

The Kremlin’s drive toward a “digital concentration camp” has recently accelerated with systematic throttling of Telegram social media download speeds and the blocking of voice calls nationwide. These technical disruptions were part of a Russian state attempts to migrate 96 million users onto the FSB-supervised messaging app “MAX” following groundwork laid during summer 2025 tests of the “sovereign messenger” law.

By mid-March, massive outages in Moscow and St. Petersburg signaled the final stages of a total platform block, with officials like Oleg Matveychev comparing the messenger to an “illegal migrant” subject to deportation.

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A VPN (Virtual Private Network) is a service that creates a secure, encrypted “tunnel” for internet data, keeping the user’s online activity private.

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