Digital Feudalism: How “White Lists” Divide russia’s Market

russia’s “white list” mechanism – a registry of resources that remain accessible even during internet restrictions – is increasingly transforming from a technical regulator into a tool of economic coercion and market redistribution in favor of players loyal to the government.

The very principle of the system is inherently anti-competitive: access to the audience is granted not to those offering the best product, but to those chosen by the state. In the banking sector, the disparity is particularly striking – out of more than 300 financial institutions, only a handful are included on the list. Indeed, head of the russian central bank elvira nabiullina has acknowledged that this structure restricts competition and pushes entrepreneurs toward large banks even when smaller ones offer more favorable terms.

Similar patterns are evident in retail and digital services: “vkusno i tochka,” “Pyaterochka”, “yandex”, and vk find themselves in a privileged position not because of market advantages, but thanks to their being on the list. Smaller players not included on the list risk simply falling out of users’ sight when restrictions are imposed.

Another aspect of the system is it being used as a tool for exerting direct pressure on businesses. Companies that continue to serve users via VPNs may be removed from the list, effectively losing their channel of access to their audience. The choice is limited: either comply with the government’s traffic filtering policy or face being pushed out of the market.

There is also a third option – a financial one. Specific amounts have not yet been disclosed, but it is clear that they will not be symbolic. The curator of domestic policy and information and communication infrastructure is sergey kirienko, who has a direct or indirect role in the formation and revision of the “white lists”.  This configuration opens up broad opportunities for informal pressure – far beyond the scope of any technical regulation.

As a result, the “white lists” have become more than just a registry of permitted websites. It is a mechanism through which the state controls access to consumers, while loyalty to the kremlin has become the new currency of competitiveness.