Western Companies Left Russia — Now Kaspersky Is Partnering With Manufacturers in India and Saudi Arabia

Russian cybersecurity firm Kaspersky is in discussions with manufacturers in India and Saudi Arabia to launch local production of hardware devices powered by its software, as the company seeks to expand internationally and reduce reliance on physical exports, founder Eugene Kaspersky said.

Under the model being considered, local partners would manufacture hardware products incorporating Kaspersky software, allowing the company to sell intellectual property rather than physical equipment across borders.

“We will be left without customs,” Eugene Kaspersky said, describing a business model that could reduce the impact of tariffs and customs procedures by focusing on software licensing and technology partnerships.

The move marks a significant shift for the Moscow-based company, which historically focused on software development. Mr. Kaspersky said the firm’s entry into hardware development was driven in part by the withdrawal of Western technology vendors from the Russian market, creating opportunities for domestic alternatives.

In 2026, the company accelerated development of hardware-software systems based on KasperskyOS, a microkernel operating system designed to protect devices from known and emerging cyber threats without requiring additional security software. The portfolio includes industrial internet gateways, automotive gateways, and smart city technology solutions.

Kaspersky is also considering the launch of a secure smartphone based on KasperskyOS, with hardware assembly expected to take place in what the company describes as friendly countries.

India has emerged as a key target for expansion. The company said local manufacturing would align with the Indian government’s “Make in India” initiative while helping meet the country’s regulatory requirements related to import substitution and critical information infrastructure protection.

Producing hardware locally would also help reduce sanctions-related risks in Asia and the Middle East, accelerate certification procedures with local regulators, and lower logistics costs, improving product competitiveness, the company said.

The expansion comes as India’s rapidly digitalizing industrial sector fuels demand for operational technology (OT) security solutions.

Kaspersky’s revenue mix has also shifted markedly in recent years. While exports previously accounted for roughly 80% of total revenue, domestic and international markets each represented about 50% of revenue by mid-2026, reflecting stronger demand within Russia after Western competitors exited the market.

“When the Western vendors left, things only got better for us,” Eugene Kaspersky said.

The company has identified Latin America and the Middle East as priority regions for future growth. Mr. Kaspersky said Latin American markets remain resilient, while geopolitical developments could increase interest in Russian technology across the Middle East.

He described India as a challenging but increasingly attractive market, while noting that African markets remain relatively small. Success across Asia, he added, often depends on individual countries’ relationships with the United States.

According to Business Development Director Andrey Efremov, Kaspersky aims to increase the international share of its revenue to more than 70% over the long term and plans to double international sales by 2029 compared with 2025 levels.

The company reported global revenue of $836 million in 2025. Its business-to-business segment grew 16%, while sales to large corporate customers increased 21%.

During the first half of 2026, revenue rose 19% across Latin America, while corporate sales in Brazil jumped 50%. Revenue in India surged 127%, underscoring the country’s growing importance to the company’s international strategy.

To support expansion, Kaspersky opened offices in Colombia and Vietnam in 2025, appointed a new general manager for Southeast Asia, and plans to establish additional international offices during 2026.

Tanmay Kadam is a geopolitical observer based in India. He has experience working as a Defence and International Affairs journalist for EurAsian Times. He can be contacted at tanmaykadam700@gmail.com.