Russian internet and tech major VK (VKCO) received RUB39.5bn ($433mn) in state funding for the development of a national video platform and over RUB4bn ($44mn) for a “multi-functional information exchange service” in 2025, according to Kommersant daily citing data from the federal budget execution.

As followed by IntelliNews, VK (formerly Mail.ru) was previously controlled by tycoon Alisher Usmanov and handed over to the state-affiliated players in 2021. VK has started to shed assets, focusing on establishing domination in the Russian digital and social media space.

This consolidation went sideways: it has had an adverse effect on VK's leverage and profitability, caused a $1.3bn loss in 2024 and required a $1.6bn capital injection.

Nevertheless, VK, whose anchor assets are the country’s largest social networks VKontakte and Odnoklassniki, was charged by the government with operating and developing the country’s “national messenger” Max as well as a domestic alternative to the YouTube streaming service VK Video. 

The Ministry of Digital Development reportedly channelled the funds into the charter capital of IK Edinoe Video, a company linked to VK, with RUB39.5bn ($433mn) earmarked for the creation, development, operation and promotion of the national video platform.

Out of that RUB7.87bn ($86mn) came from the government reserve fund, while over RUB4bn ($44mn) was allocated to the “information exchange service”. The specific service is not named, although a federal law on its creation entered into force in June 2025 and designated an operator later reorganised as MAX, founded by VK-related entities.

Sources familiar with the project told Kommersant that the subsidies were effectively directed to VK Video, adding that the higher funding reflects the platform’s technical complexity, including content delivery network infrastructure. 

According to Mediascope data cited by Kommersant daily, VK Video reached a daily audience of 42.2mn users and a monthly audience of 82.8mn in January, compared with 65.9mn for YouTube and 47.7mn for Rutube over the same period.

Market participants told the daily that the authorities are moving towards formally recognising VK Video as a national platform to “increase its status” versus competitors, noting that the designation applies to user-generated content platforms rather than online cinemas and streaming services. 

Analysts cited by Kommersant believe that the “national” video streaming service status ensures guaranteed access under internet restrictions, mandatory pre-installation and integration with state services.