Hetzner sent the following to some users this weekend:
We regret to inform you that due to the tense geopolitical situation with Russia, we will be ending our contractual relationship with customers from Russia.
Political decisions have led to changes in the legal regulations that affect our business with Russian-based customers. Unfortunately, we can no longer have contracts with customers with Russian postal addresses. This will affect everyone with a Russian address stored on Hetzner Accounts.
After we analyze the customer databases, we will send the affected customers a notice of termination for all products and services on Friday, 15 December 2023. It will take effect from 31 January 2024. We recommend that you take appropriate measures now.
We very much regret the inconvenience, ask for your understanding in this challenging situation, and thank you for your continued cooperation.
We will answer any questions you may have. Please write to us by logging onto your account on our administration interface and going to “Support” in the menu.
This is not really surprising. As Western nations tighten their grip on Putin’s despotic regime, it’s more difficult for businesses to interact with Russian citizens who live in Russia.
Given the Russian government’s new Orwellian spy laws, I’m guessing the number of Russian hosts with German customers is exactly zero.
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The Western pullout from Russia has backfired against the West and western companies. Western companies have already written off over $100B due to pulling out of the Russian market. It has benefited Russia, the Russian economy, the Russian war effort, insiders in the Russian government and Russian companies and entrepreneurs who have made a killing buying western assets for pennies on the dollar, and the Russian government, which got huge kickbacks, i.e. taxes, from the fire sales of Western owned companies in Russia.
https://www.nytimes.com/interactive/2023/12/17/world/putin-companies-economy-boycott-elites-benefit-ukraine-war.html
The most accurate part of your statement is that members of the Russian government got huge kickbacks. Of that I have no doubt.
https://en.wikipedia.org/wiki/Kickback_(bribery)
They only “make a killing” when those assets are viable. These subsidiaries typically integrated with supply chains, access to markets, company internals and network effects that are at best disrupted by the divestiture, and whose business case is hollowed out in practical terms by all those things plus the sanctions themselves. So they can pat themselves on the back for picking up office furniture on the cheap, for what good it does them, but it’s laughable to suppose that many will be able to simply continue to operate as standalone domestic businesses.