Understanding and Protecting Your Organization from Russia’s Evolving Economic Tactics

Russia launched its full-scale invasion of Ukraine on February 24, 2022, initiating one of the largest conflicts in Europe since World War II. This war, which has lasted far longer than many experts anticipated, has led to widespread international condemnation and a significant humanitarian crisis.

Over the past three years, Russia’s technology sector has fallen behind, and the Kremlin is now resorting to increasingly nefarious tactics to close the gap and achieve “technological sovereignty”—its ability to develop, control, and maintain its own critical technologies and technological infrastructure without relying on foreign countries or multinational corporations.

This concept has gained increasing importance for Russia, especially in the context of geopolitical tensions, economic sanctions, and its efforts to insulate its economy and national security from external influence.

In this article, we’ll talk about the drivers behind Russia’s technological stagnation, four areas where they’re adapting their tactics, and the steps your organization can take to protect your own technology.

For a deeper dive, though, download “Navigating the New Geopolitical Reality”—a comprehensive white paper written by Strider’s Global Intelligence Unit about Russia’s evolving strategy.

Russia adapts economic espionage tactics in Europe

Its ongoing war with Ukraine has been devastating to Russia’s technology sector, which continues to lag further behind the West.

Because of sanctions, export controls, and visa restrictions imposed by the United States and its allies, Russia has struggled to acquire critical technologies—such as quantum computing, additive manufacturing, and augmented reality.
The expulsion of more than 700 Russian officials from countries throughout Europe has also significantly reduced the number of personnel able to engage in espionage throughout the continent.

Since the invasion, around one million Russians—most of them young and well-educated, who would have contributed to Russia’s advanced industries—have fled the country. Additionally, it’s estimated that Russia has lost around 50,000 scientists to emigration since 2019.

As a result, Russia is adapting its strategies to navigate economic isolation and sustain its technological edge. This includes a growing reliance on individuals operating under non-official cover—such as oil and gas workers, professors, and other professionals—who may utilize social media platforms like LinkedIn to connect with targets in Europe and the United States.

This means that private companies are now being subjected to greater risk from Russia and other adversarial nations.

The Kremlin ramps up reverse-engineering efforts

After Russia invaded Ukraine, many firms chose to close up shop in Russia and move elsewhere. Likely as a form of retribution against those firms, Russian president Vladimir Putin directed the government to use funds from the “exit tax” imposed on foreign companies leaving Russia to finance reverse-engineering initiatives.

As a result, since 2022, the Russian government has funneled at least $110 million USD into projects focused on imitating Western-made products. This push toward imitation technology has raised concerns that foreign companies may face increased competition from Russian knockoffs in markets favorable to Russia, such as India.

The Russian government is seeking to reverse engineer hundreds of products manufactured by leading American and European companies, including integrated circuits, chemical compounds, automotive parts, and engines, and weapons systems.

Russia leverages relationships for “gray zone” operations

“Gray zone” activities—such as arson, attempted bombings, vandalism, cyberattacks, propaganda and misinformation, territorial encroachment, and other disruptive actions—generally fall between traditional states of peace and war. These actions, in which Russia has been heavily involved, are often ambiguous, covert, or non-traditional, designed to achieve strategic objectives without crossing thresholds that would typically provoke a formal military response or war.

The Russian government has reportedly been analyzing online profiles of individuals in Europe to identify those who may be susceptible to manipulation by the Kremlin—and then using them to target infrastructure and organizations (especially those providing support to Ukraine) as part of a broader campaign intended to create chaos and undermine NATO and EU cohesion.

The European Union has increased export prohibitions in an attempt to punish Russia for evading sanctions

Starting in January 2025, new prohibitions on exports to Russia will raise compliance burdens and risks for businesses based in the European Union (EU).

Since the war started in 2022, the EU and its allies have implemented hundreds of sanctions aimed at limiting Moscow’s access to foreign technology necessary to sustain the war. These sanctions, however, are notoriously difficult to uphold, and third-party countries continue to play a key role in helping Russia evade them. According to Ukraine’s military intelligence agency, there has been no significant change in the flow of foreign components to Russia.

Read more about how companies with ties to Russia—including some within Ukraine—pose a risk to Western organizations.

What can you do to mitigate risk for your organization?

This complex environment requires more than traditional due diligence or surface-level risk assessments. Organizations must have a comprehensive understanding of how state actors—like Russia—manipulate supply chains, leverage global networks, and exploit access to sensitive technology.
Strider’s Checkpoint solution provides unparalleled visibility into complex supply chains, uncovering hidden connections to state-sponsored actors and high-risk entities. This is especially critical in the context of Russia’s evolving tactics to acquire foreign technology despite extensive sanctions.