Russian PM pledges flexible taxes, support to IT firms as crisis unfolds

MOSCOW - Prime Minister Mikhail Mishustin on Wednesday said Russia would provide additional funds to develop its IT sector and may tweak tax arrangements for businesses and households as it seeks to manage the fallout from unprecedented western sanctions.

"For three years, all IT companies will be exempt from paying profit tax and from inspections by controlling authorities," Mishustin told a government meeting. "They will be able to take loans on favourable terms and new projects at a rate not exceeding 3%."

Russia's central bank hiked its key interest rate to 20% on Monday.