Update May 16, 2022 — The NashStore application store, initially scheduled for launch on May 9, was finally released on May 16 — but bugs were reported and the store was not fully functional yet.
In a bid to make the use of mobile app independent from US platforms, three Russian digital majors — Sber, VK Company and Yandex — and a non profit developer network called Digital Platforms are developing 100% Russian mobile application stores.
Digital Platforms launched its project in March, after Google announced restrictions to the use of Android in Russia (1). Christened ’NashStore’ (“Our Store” in Russian), the platform is presented as “an Android app store” that will “enable citizens of Russia and the Eurasian Economic Union to use the usual services without restrictions.”
Users will be able to download, install, update applications and pay for subscriptions, with “various payment methods compatible with the ‘Mir’ cards.” (The Mir payment card system has been been developed since the mid 2010s as Russia’s answer to Visa and Mastercard.)
“Unfortunately, Russians can no longer normally use Google Play to buy apps and developers have lost their source of income,” Vladimir Zykov of Digital Platforms was quoted as saying in late March, explaining the reasons of this initiative.
He claimed that “more than 700 companies,” at that time, were participating in the project.
The alpha version of NashStore is set for launch on May 9, Russia’s highly symbolic Victory-Day. Digital Platforms has suggested the authorities to have the store included in the list of mandatory pre-installed programs for smartphones in Russia.
Three local digital giants in the running
Meanwhile, on April 21, Prime Minister Mikhail Mishustin instructed the Ministry of Digital Transformation to ensure the creation of such stores for mobile devices, setting the deadline on June 1.
The government seems to be betting mainly on VK Company — one of Russia’s key digital ecosystems, previously known as Mail.ru Group, under the Kremlin’s indirect control — if judging by recent statements from minister of Digital Transformation Maksut Shadayev.
“We have agreed with major Russian big tech companies, first of all, with VK Company, which has taken on the task of developing this app store,” the minister said.
“This is not done for budget money, it [should be] a full-fledged ecosystem that will self-develop while being regulated by the largest market participants,” Shadayev added.
VK Company is planning to launch the beta version by the end of May.
Last month business daily Kommersant reported that Sber, the state-controlled financial and tech giant, and Yandex are also in the running. The former has an existing corporate application store called SberStore, while the latter could revive its ‘Yandex.Store”, which was closed in 2020.
The question remains as how to attract foreign application publishers into these Russian stores — which might not be easy in the current political context and due to the difficulty of international money transfers.
(1) On March 10, 2022, Google Play paused its billing system for users in Russia “due to payment system disruption.” As a result, users cannot purchase apps and games or conduct any in-app purchases of digital goods — but free apps have remained available on the Play Store. On May 5, 2022, Google Play went further “as part of [its] compliance effort:” since that date, the downloading of paid apps and updates to paid apps have been blocked for users in Russia (more details here).
