Spotify abandons Russian launch plan

http://www.theguardian.com/media/2015/feb/03/spotify-abandons-russian-launch-plan

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Spotify has shelved its plans to launch in Russia, reportedly due to concerns over the economic and political climate in the country.

The music streaming service recruited former Google executive Alexander Kubaneishvili to lead its push into Russia, but news service RBC reported that he had written to its partners announcing that the launch had been cancelled.

Kubaneishvili wrote: “I regret to inform you that Spotify refused to launch in Russia in the foreseeable future. There are several reasons – the economic crisis, the political situation, the new laws governing the internet.”

His statement that the move was for the “foreseeable future” suggests the Swedish company may revisit its decision should economic and political conditions change.

Kubaneishvili also told Russia’s Tass news agency that he would officially leave Spotify next week.

Spotify has not yet commented on the move. It reportedly faced problems reaching deals with mobile operators, as well as the high level of music piracy within Russia.

The music streaming service has launched in 58 countries around the world, including Poland, Latvia, Bulgaria and others in eastern Europe.

Other tech companies have also expressed concerns about conditions in Russia: last year, Google closed its engineering office in Russia due to a law that requires internet companies to move data on Russians onto servers inside the country, or face being blocked.

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