MSFT/IBM Boomerang'd As Russia Retaliates, Prepares To Cease Imports Of US IT

Tyler Durden's picture


With the German economy already suffering (and AMD cutting its outlook), it appears Putin's promise to ensure Obama's action will see retaliation are starting to weigh as much on the rest of the world as Western media suggest US sanctions are weighing on Russia. This time, after blocking foreign cars and Intel/AMD chips, Bloomberg reports the State Duma, Russia’s lower house of parliament, is drafting a bill to require government agencies and state-run enterprises to give preference to local providers of software and hardware. For some context, IBM, Microsoft, HP, Cisco, Oracle, and Germany’s SAP SE had combined revenue of 285 billion rubles ($8.1 billion) from Russia (with 77% coming from government and SOEs). “This all has to do with sanctions,” warned one Russian politician.


As Bloomberg reports,

Russia’s parliament is preparing new regulations to reduce its reliance on foreign technology suppliers after the U.S. imposed sanctions against some of its largest companies, a move that could hurt sales at vendors such as Microsoft Corp. (MSFT) and International Business Machines Corp. (IBM)


The State Duma, Russia’s lower house of parliament, is drafting a bill to require government agencies and state-run enterprises to give preference to local providers of software and hardware, according to a document from the commission for strategic information systems obtained by Bloomberg News. The paper addresses criteria for tender processes such as favoring products that don’t have imported, licensed components.




IBM, Microsoft, Hewlett-Packard Co. (HPQ), Cisco Systems Inc. (CSCO), Oracle Corp. (ORCL) and Germany’s SAP SE had combined revenue of 285 billion rubles ($8.1 billion) from Russia last year, according to estimates by the Russian Academy of Sciences included in the commission document. About 77 percent of the sales were contracts from the government and state-controlled companies, it said.


With the lack of regulation in post-Soviet Russia that governs the award of technology contracts, foreign vendors account for 67 percent of software used in the country and about 90 percent of hardware, according to the commission. Foreign software may have hidden capabilities such as “bugs” and “backdoors,” giving suppliers access to confidential data, Chernogorov said.


“This all has to do with sanctions,” said Andrey Chernogorov, executive secretary of the commission, said in a phone interview. “Given the current international tensions, substituting imports with local software and hardware becomes the key to ensuring self sufficiency.”

*  *  *

As Putin recently opined, the boomerangs are coming home...

“The US is certainly one of the world’s leaders. At some point it seemed that it was the only leader and a uni-polar system was in place. Today it appears that is not the case. Everything in the world is interdependent and once you try to punish someone, in the end you will cut off your nose to spite your face,” he said.

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Mon, 07/21/2014 - 20:35 | 4985995 kchrisc
kchrisc's picture

Wait until China does this.

"Now which foot do I shoot next?!"

Mon, 07/21/2014 - 20:45 | 4986026 Publicus
Publicus's picture


Mon, 07/21/2014 - 20:54 | 4986055 icanhasbailout
icanhasbailout's picture

I would weep for the poor schmucks caught in the middle of this, except for their downtime hobbies of designing genocide programs for the third world.

Mon, 07/21/2014 - 21:13 | 4986139 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

I have always heard that Russian software is way ahead of American for the simple fact in the past they had to put forth good code on poor hardware. Since good hardware is easily available to them now, they don't need crappy software by places like IBM who uses 3rd world nation slavery.

Tue, 07/22/2014 - 00:26 | 4986277 SafelyGraze
SafelyGraze's picture

putin has it backward

sell in the dark pools to keep the price the same while you unload

then buy back in the visible market

let the hft gorge as you walk the prices up to impossibly high levels

high enough for the msm to start openly discussing the possibility that someone could strategically and politically be changing the price on purpose

then stand back and watch it tumble as the profit taking sets in


Mon, 07/21/2014 - 20:46 | 4986032 jaap
jaap's picture

How many rubbles is Ubuntu in Russia? Who is going to pay for educating (dumbing down) the American children?

Mon, 07/21/2014 - 21:08 | 4986110 CheapBastard
CheapBastard's picture

AMD already was [quietly] closed down its Austin HQ awhile back I read after all the loud Hoopla when it first opened there:


AMD sells its Austin HQ for $164 million to raise some quick cash After really rough 2012, chipmaker faces ever-increasing challenges.


We read not long ago CSCO warnign Barry to trim NSA or we'll suffer more contract losses [and revenue].


Gee. Lucky we're in the Summer of Rekovery.

Mon, 07/21/2014 - 21:39 | 4986123 Freddie
Freddie's picture

Is Ubantu relative spy shitware free?  I heard Puppy LINUX was.   The hilarous part is IBM is big on LINUX and now the Russians have another reason not to use those retard IBM consultants.  

This is a boon for the Russian, Chinese, Japanese and Taiwanese tech industries. 

Tue, 07/22/2014 - 03:51 | 4986955 SF beatnik
SF beatnik's picture

This is a boon for the Russian, Chinese, Japanese and Taiwanese tech industries. 


Yeah. Thanks a lot,  Obama!

Mon, 07/21/2014 - 21:33 | 4986213 williambanzai7
williambanzai7's picture

I believe China has already started down this path.

Mon, 07/21/2014 - 22:46 | 4986471 messystateofaffairs
messystateofaffairs's picture

Shoot the middle foot next, that way the US won't have a member to screw the world with and their handlers and planners won't need to have their Mohels suck the country dry.

Mon, 07/21/2014 - 20:38 | 4985999 Cognitive Dissonance
Cognitive Dissonance's picture

It seems 'they' are trying real hard to create the economic straw that broke the stock rally's back. When pin pricks (or central banker pricks) won't, or can't, deflate the bubble, then maybe the false flag BUK missiles will.

Mon, 07/21/2014 - 21:28 | 4986187 rsnoble
rsnoble's picture

Personally i've had it with those that are called 'they'.  

Mon, 07/21/2014 - 21:36 | 4986223 Pure Evil
Pure Evil's picture

Ok, from this point forward "they" will now be referred to as "them".

Mon, 07/21/2014 - 21:58 | 4986307 FeralSerf
FeralSerf's picture

Would you prefer "TPTB"?

Mon, 07/21/2014 - 20:37 | 4986002 buzzsaw99
buzzsaw99's picture

still no word on oil and gas exports. until they cut that it doesn't amount to a hill of beans.

Mon, 07/21/2014 - 20:48 | 4986038 Ness.
Ness.'s picture

When they cut O&G?  Everyone goes to war.  

Mon, 07/21/2014 - 20:41 | 4986015 Itch
Itch's picture

How much is being paid to pump all this Russian propaganda ZeroHedge? Putin is a fucking screwball, he's China's bitch and now he's lost in a conspiracy vortex of gibberish. Great moves Mr Putin, but then that's what we would expect from a man who gets his votes from riding bare-back naked on a horse. Fuck me, Russia is more backward than i thought.

Mon, 07/21/2014 - 20:47 | 4986035 TungstenBars
TungstenBars's picture

How much is (MSM) being (blackmailed) to pump all this (Washington) propaganda? (The neocons are) fucking screwball(s), (They're banker) bitch(ez) and now (they've) lost (all their senses) in a (psyhopathic) vortex of (killing innocent people to push their agenda). Great moves (Obama), but then that's what we would expect from a man who gets his votes from (giving out free phones) (and enjoys) riding bare-back naked on (Reggie). Fuck me,(the USA) is more (fucked) than i thought.

Mon, 07/21/2014 - 20:59 | 4986076 Itch
Itch's picture

Oh, all the boogie men rolled out in one paragraph. Too much ZH and RT for you, i recommend a cold shower and a dark room.

Mon, 07/21/2014 - 22:19 | 4986396 angel_of_joy
angel_of_joy's picture

I recommend you go somewhere else and perform the anatomically imposible act...

Tue, 07/22/2014 - 03:40 | 4986946 Titus
Titus's picture

Itch is repeating Jon Stewart's attack on Putin verbatim. Must. Be directly from the ADL's talking point brief.

Mon, 07/21/2014 - 20:49 | 4986045 Freddie
Freddie's picture

Russia is more backward?   The people who control Obama are involved in the invasion of America and Europe  of illgelas, the Syrian genocide, the Ukraine coup, dumb wars where American boys get killed for nothing and Russia is backward?  LOL!   Idiot.

Mon, 07/21/2014 - 20:53 | 4986057 john39
john39's picture

and also paying to flood the internet with idiot trolls smearing Russia and telling everyone how civilized israelis are for murdering brown children.

Mon, 07/21/2014 - 21:11 | 4986127 Itch
Itch's picture

If you can point me in the direction where someone will actually pay me to laugh at you, please, do. 

Mon, 07/21/2014 - 22:31 | 4986432 messystateofaffairs
messystateofaffairs's picture

Itch, rhymes with bItch.

Mon, 07/21/2014 - 23:31 | 4986566 perchprism
perchprism's picture


Also rhymes with CUNT.

Mon, 07/21/2014 - 21:11 | 4986120 Itch
Itch's picture

Where is all the famous ZH level of evidence for all these suggestions? I thought you boys were all practically lawyers or something?

Mon, 07/21/2014 - 21:16 | 4986145 Freddie
Freddie's picture

Because the elites have been doing it for years you moron.  Now the Soros State Department has gone full reatrd.   The biggest threat to Americans is in Washington DC and another country where the Senate voted for more dead children also add the Saudis in that mix and the European bankster families.  

Mon, 07/21/2014 - 21:25 | 4986177 Itch
Itch's picture

Well, that ties it all up for me. I'll go to bed now and let you think about that some more.

Mon, 07/21/2014 - 22:02 | 4986329 logicalman
logicalman's picture

Go to bed..... or don't.

If you really believe what you are typing, you are obviously asleep either way.

Mon, 07/21/2014 - 21:51 | 4986286 CrashisOptimistic
CrashisOptimistic's picture

Take a moment and look up the #1 producer of crude in the world.

Not all liquids BS.  Crude oil.  Look it up, all 10.5 million bpd of it.

Mon, 07/21/2014 - 20:54 | 4986058 Itch
Itch's picture

What's it feel like covering up the murder of civilians for peanurs?

Mon, 07/21/2014 - 21:00 | 4986079 TungstenBars
TungstenBars's picture

Respectfully, if you don't like non gov sanctioned viewpoints then get lost. 

If you are some paid .gov shill then go fk yourself. 

Tue, 07/22/2014 - 05:17 | 4987017 blentus
blentus's picture

I don't know.

Ask Obama and Kerry.

Mon, 07/21/2014 - 20:57 | 4986068 Winston Churchill
Winston Churchill's picture

Itch as in crabs.

Mon, 07/21/2014 - 21:07 | 4986107 Itch
Itch's picture

All the big wits are out tonight, how long did it take you to think up that one? Hold on, don't answer that.

Mon, 07/21/2014 - 22:04 | 4986342 logicalman
logicalman's picture

Instead of just getting up people's noses and acting (benefit of the doubt here) like an idiot, why not give all us uneducated fools some useful information.

I think I know why, but why not take a stab at proving me wrong.


Mon, 07/21/2014 - 21:30 | 4986196 Anusocracy
Anusocracy's picture

"he's China's bitch"

Don't think so. Look at the recent BRICS photos. Putin was standing in the middle.

Tue, 07/22/2014 - 02:35 | 4986863 zhandax
zhandax's picture

I wondered about that photo.  They were almost lined up in acronym order except for Putin and the Indian PM.  Vlad didn't want to stand next to the ugly broad?

Tue, 07/22/2014 - 02:47 | 4986903 pupdog1
pupdog1's picture

Used car regional sales meeting.

Tue, 07/22/2014 - 00:51 | 4986743 PT
PT's picture

Re  "... that's what we would expect from a man who gets his votes from riding bare-back naked on a horse ..." :

I'd probably vote for anyone who did ANYTHING OTHER than PLAY GOLF!!!!!!!  I mean, seriously!  People have so much wealth and power and all they want to do in their spare time is play GOLF??????  WTF is going on in their tiny little brains?  What a fucking huge waste!  Fuck!  You could play marbles in your spare time and I'd probably vote for you just because it is NOT GOLF!!!  Personally got nothing against the game except it really seems to display a lack of imagination in the upper echelons of this world.  Get a REAL hobby FFS!!!

or al least give me some of your money so I can do something constructive with my time.  Just 'cos you fucks have the imagination of a crushed maggot, doesn't mean the plebs are also that braindead. 

Tue, 07/22/2014 - 00:56 | 4986753 PT
PT's picture

US President:  Narrator job that is made available exclusively to golf players.  If you can present well, speak well, read from a teleprompter and make your way around a golf course, then who knows?  One day you might get lucky!

Mon, 07/21/2014 - 20:41 | 4986016 straightershooter
straightershooter's picture


Apple ios, based on the article linked above, is a spyware??????????

Mon, 07/21/2014 - 20:45 | 4986030 buzzsaw99
buzzsaw99's picture

all operating systems are spyware

Tue, 07/22/2014 - 01:14 | 4986781 PT
PT's picture

Why are you so surprised?  Apple was trying to wrest control of your computer away from you way back when people were still hacking their own IBMs!  You really thought they were just trying to "protect" dumbed down computer users from bad software???  On the one hand, yes, they marketed themselves to professionals that needed a computer to do specific tasks and didn't care what happened under the hood as long as it worked, but Apple dumped the programmers long before Microsoft discovered it could still get along while pissing us off.

Hint:  If a company makes it hard for you to program YOUR OWN computer, then YOU CAN NOT TRUST IT!!!!!
Fuck, the Apple Macs wouldn't even trust you to eject your own discs - it didn't have an eject button!  If they wouldn't trust me with an eject button, why would I trust them with ANYTHING??????  Thus began my life-long hatred of Apple, even though they had a great processor at the time ...

You think I want to use someone else's shitty software when I can write my own?  How many problems could we solve if everyone wrote their own software, or at least hacked into what they bought and modified it to suit themselves, let me count the ways ... another hint:  Virus paranoia is completely unnecessary for some people ... , some people can block their own ads, restucture their own software to examine email ... some people don't need to know the latest way to hit "refresh" or the latest way to turn their computer "off" ...

Tue, 07/22/2014 - 01:44 | 4986822 PT
PT's picture

Whoops!  Yes, I do realize that the remark about "refresh" and "off" refers to MS not Apple ( as far as I know ).

Tue, 07/22/2014 - 03:20 | 4986927 zhandax
zhandax's picture

PT, I will agree with you, but that shit takes time if you don't do it every day.  I do what I can and live with sub-optimal results in the interest of affording time for other projects.  I am getting hit with project creep badly these days.  In the midst of a modest remodeling project, I cut the grass yesterday, and noticed some orange peeking out from a tomato plant.  By the time dark arrived, I had picked 40 San Marzano sauce tomatoes, not to mention a bag of cherry and grape tomatoes and another sack of green beans.  None of the big heirlooms are ripe yet, but some of the green ones are 1.5-2 lbs.  Hope the garlic and basil is big enough, cause I have to burn a night to pick some and make Marinara sauce some time this week.

Tue, 07/22/2014 - 11:04 | 4987907 PT
PT's picture

I've been watering my hex inverter chips religiously for the last six months and none of them have sprouted yet.  I was hoping to have a nice crop of microprocessors by spring.



Tue, 07/22/2014 - 11:20 | 4987980 PT
PT's picture

On a more serious note, yes I agree such things take time, but with no help from the computer industry for those that do have the time and inclination.  You might not have the time but the kid down the street might have both the time and the inclination.  Who you gonna trust?  MS, Apple or the kid down the street?  Especially if the kid down the street wishes to compete with the kid across the road?  MS and Apple have already proven that you couldn't do any worse.

One of my endless sources of frustration is that the technology is changing faster than I can keep up with it - otherwise I would have NONE of the above problems I just mentioned.  25 years ago people ridiculed my choice of computer (I got the fast, cheap and powerful one) on the grounds that it "wasn't compatible with anything".  These days, new versions of stuff aren't even compatible with old versions.  Compare VB 2005 with VB 2010, or DirectX 7, 8 and 11.  Everyone says, "I don't care how it works, as long as it works" but then we ALL have to put up with crap like Windows 8.  Duh.

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