Sanctions Against Russian IT Companies, Important Enterprises in IT

Sanctions Against Russian IT Companies

The President of Ukraine, by his Decrees dated 15.04.2023 No. 227/2023 and 228/2023, has enacted the Decisions of the Security and Defense Council of Ukraine imposing sanctions against a number of Russian citizens and companies, in particular, in the IT sector, including 1C-Galaktika, Rambler, Yandex.

Criteria for Critically Important Enterprises in the Realm of Digitalization Determined

On 14.03.2023, the Order of the Ministry of Digital Transformation of Ukraine (the Mintsyfry) according to which the criteria for classifying enterprises as those that are important for the field of the national economy in the realm of digitalization (the “important enterprises“) were established, came into force. Such status entitles a company to the reservation of employees.

At their request, the Mintsyfry must classify as the important enterprises those business entities that:

ensure functioning and development of the infrastructure of broadband access to the Internet and electronic networks, i.e.:
1. are an authorized representative of a foreign supplier of radio equipment and/or technical means of electronic communications and/or software products necessary for the planning, support, maintenance, configuration, construction of networks supplied for the needs of suppliers of electronic communications services and/or networks and/or operators of electronic communications, or
2. carry out maintenance, repair, construction of electronic communication networks that ensure the provision of electronic communication services in two or more regions of Ukraine, or
3. ensure the functioning of the data processing center and/or traffic exchange infrastructure in two or more regions of Ukraine,
conduct activities in the realm of the IT industry, provided that they:
1. carry out type(s) of activity according to the list established for Diya City residents including computer programming, consulting on informatization issues, computer equipment management activities; publication of computer games and other software; provision of web services for the delivery of software applications; data processing (except for providing infrastructure for hosting); research and experimental developments in the field of natural and technical sciences regarding information and information and communication technologies; activities of organizers of e-sports competitions, e-sports teams, specialized computer centers and/or clubs; ensuring cyber security of information and communication systems, and at the same time
2. ensure that an average salary of employees at the enterprise for the last calendar quarter is not less than the equivalent of €1,200, and
3. have an average registered number of insured persons – employees at the enterprise for the last calendar quarter of at least 9 persons,
ensure the development of the IT industry, i.e. have provided irrevocable financial aid to private business entities that conduct innovative activities, implement innovative projects, carry out activities related to the creation of technologies, activities belonging to creative industries, scientific activities, scientific and technical activities, amounting at least 30 000 000 UAH for the previous calendar year and/or within the current year, that is confirmed by information on financial support agreements.

To confirm their status, companies must submit relevant information in an arbitrary form signed by the director to the Mintsyfry.

For more detailed information on the criteria, please see the Mintsyfry’s Order dated 23.03.2023 No. 30.