Mail.Ru Group estimates $13 million losses due to blocking of its services on the territory of Ukraine
Due to the blocking of VKontakte, Odnoklassniki, and other Mail.Ru Group services in Ukraine, the company will lose about 1.5% of its revenues in 2017, which is about 790 million to 809 million rubles or slightly over thirteen million dollars. This is reported in the company's report for the second quarter of 2017.
"The blocking of our products in Ukraine in the second quarter had an adverse impact on our revenues. We estimate the negative impact at 1.5% of our total revenue in 2017. Despite this, in other areas, our business performance remains very good," Vc.ru website says.
Earlier Mail.Ru claimed that leaving the Ukrainian market would not affect the company's financial performance. They reported at the time that the share of Ukrainian business in the company's revenue structure was insignificant.
On May 16, Ukrainian President Petro Poroshenko put into effect the decision of the National Security and Defense Council, wherein the list of individuals and legal entities of the Russian Federation against which sanctions were imposed was expanded. The expanded list includes 1,228 individuals and 468 legal entities. Access to the social networks VKontakte and Odnoklassniki was banned in Ukraine, as well as access to Mail.ru and Yandex.
According to TNS agency, as a result of the blocking, Russian social networks and Yandex lost their position in the top 10 most popular sites in Ukraine.