March 19, 2026
“They destroyed all of Moscow’s competitive advantages”: Internet shutdowns are taking their toll on the Russian capital
For two weeks now, Moscow has been experiencing problems with mobile internet. The restrictions, which the authorities justify on security grounds, are affecting not only ordinary people but also businesses. Carsharing, utility payments, transactions, parking, taxis — all of the digital services Muscovites had become accustomed to have been significantly disrupted, and there is no sign that they will be restored in full anytime soon. By the most conservative calculations, in just the first five days of the shutdown the capital’s businesses lost 3 billion rubles ($34.8 million). A similar situation is unfolding in many other regions.
TL;DR
- High-end stores in central Moscow are operating on a cash-only basis due to issues with card payment systems and loyalty programs, caused by mobile internet outages.
- Mobile internet problems began on March 6 and were explained by authorities as security measures, with partial restoration occurring on March 13, allowing access only to 'whitelisted' services.
- The restrictions are affecting various sectors including retail, transportation (taxis, carsharing), city services (parking, utility payments), and even educational institutions.
- Economic losses for Moscow businesses in the first five days of the shutdown are estimated between 3 billion and 5 billion rubles ($34.8 million to $58.0 million).
- Internet disruptions are occurring nationwide, with varying degrees of official acknowledgment and public awareness in regions like Volgograd, Ulyanovsk, Kaluga, Vladimir, and Omsk.
- The public Wi-Fi network in Moscow has seen a user increase of approximately 50% amid the mobile internet shutdown.
- Businesses operating through social media platforms blocked in Russia, such as Facebook and Telegram, are facing significant challenges.
- Cyber lawyer Sarkis Darbinyan suggests that these restrictions and 'whitelists' are likely permanent, citing new legislation that allows for internet shutdowns at any time.
- Users are increasingly relying on VPNs and wired internet connections to bypass restrictions, with some comparing the situation to circumventing censorship during Soviet times.
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