The music streamer Spotify was all set to plow into the Russian market, having poached a former Google exec, Alexander Kubaneishvili, to lead the offensive. However, that plan has gone out the window for now.
According to Russian broadcaster RBC, Kubaneishvili announced the pause on Monday, citing Russia’s political and economic situation, as well as pending Russian legislation about regulating the internet. Spotify will not launch in the country “for the foreseeable future,” he said, adding that he does not work for the company anymore.
According to TASS, the firm is also shutting down its Russian office in its infancy. RBC reported that Spotify’s Russian launch had already been delayed because it had failed to agree partnerships with local mobile operators, though TASS indicated some progress had been made with Vimpelcom. I asked Spotify for comment on all this, but the company refused to provide any.
Russia’s ruble is having a very rough time, largely due to the falling oil price and sanctions related to the country’s invasion of neighboring Ukraine and annexation of the Crimean peninsula.
Meanwhile, the country has also been pumping out various new laws designed to clamp down on internet freedom. The most relevant is probably Russia’s local data storage mandate, through which it intends to force web service providers servicing Russians to store their personal data in local data centers. This rule is set to come into force in 2016.