Russia's new Internet czar vows to make Apple & Google pay more taxes

In an effort to bolster local competitors, Russia's new Internet adviser to president Vladimir Putin plans to raise taxes on American companies, singling out Apple, Google and Microsoft as targets.

German Klimenko hopes that new measures targeting American businesses will help homegrown companies like Yandex and Mail.ru, according to a new profile by Bloomberg. Russia is exploring new revenue avenues as the country faces its worst recession since Putin took office in 2000.

While Klimenko said he plans to target Apple for taxes, his focus seems greater on rivals Google and Microsoft. In particular, he plans to switch Russia's computers from Microsoft Windows to Linux, citing the company's compliance with sanctions on Crimea.

Google also refuses to respond to law enforcement requests from Russia, despite compliance in other nations. Klimenko sees that as a "potential threat" to Russia's national security.

Apple's online store in Russia opened in June of 2014. It is the only direct sales path for Russian consumers, as there are no brick-and-mortar Apple stores in the country.

Last September, Apple began hosting local iCloud data within Russia, in compliance with a new law in the country. Its compliance ensured that its online services were not blocked in Russia. Apple has noted that all data stored on servers is encrypted and could not be accessed by outside parties.

22 Comments

SpamSandwich 32917 comments · 19 Years

About 8 years ago

I believe that would be a clear violation of existing so-called free trade agreements. Russia (not to mention China) should be kicked out of the WTO.

matrix077 868 comments · 9 Years

SpamSandwich said:

I believe that would be a clear violation of existing so-called free trade agreements. Russia (not to mention China) should be kicked out of the WTO.

I come here to say the same thing. Why is China still allowed in WTO? Why is it allowed in at all?

crowley 10431 comments · 15 Years

SpamSandwich said:

I believe that would be a clear violation of existing so-called free trade agreements. Russia (not to mention China) should be kicked out of the WTO.

What would be in clear violation? No policy has been announced. An economic adviser having an opinion is not grounds for kicking a country out of an international organization.

williamh 1045 comments · 13 Years

SpamSandwich said:

I believe that would be a clear violation of existing so-called free trade agreements. Russia (not to mention China) should be kicked out of the WTO.

I guess invading the Republic of Georgia and Ukraine would be violations of something too. Isn't homosexuality still a crime there? Doesn't seem like the Russian government is too worried about toothless agreements or boobs like John Kerry. Maybe we should try another Russian reset button?

Anyhow, when the EU wants to grab more money, we usually have some folks that say that Apple ought to pay their fair share. Why doesn't Apple have to pay their fair share in Russia? I know, it looks like a blatant cash grab, but Russian bureaucrats gotta eat too. And take their trips to the French Riviera, Monaco, etc. BMWs don't come cheap either. Apple could solve this with a few well placed gifts.