Potanin Buys 25% Stake in Cloud Firm Selectel

Russian billionaire Vladimir Potanin has acquired a minority stake in cloud provider Selectel through a joint venture as Russia accelerates efforts to build domestic AI capabilities.
The investment reflects growing interest among major Russian companies in expanding technological infrastructure.
Selectel’s rapid revenue growth and large cloud footprint make it a strategic asset for AI development.

Strategic Investment to Support Russia’s AI Ambitions

A joint venture controlled by Vladimir Potanin (pictured) has purchased a 25% stake in Selectel, one of Russia’s largest IT infrastructure and cloud service providers. The acquisition, valued at roughly 16 billion roubles ($206 million), was confirmed by T‑Technologies, a partner in the venture. Catalytic People, the joint entity formed by Potanin’s Interros and T‑Technologies, completed the transaction as Moscow pushes for stronger domestic AI development. Russian officials have repeatedly emphasized the importance of home‑grown AI models for national sovereignty.

President Vladimir Putin (pictured) has urged major technology companies such as Sberbank and Yandex to accelerate progress in artificial intelligence. His comments reflect a broader national strategy to reduce reliance on foreign technologies. Potanin has been expanding his presence in the tech sector, acquiring a 9.95% stake in Yandex earlier this year. He suggested in a recent television interview that Russian companies, including Nornickel, could soon see significant breakthroughs in AI.

Interros, Potanin’s holding company, remains the largest shareholder in T‑Technologies with a 41% stake. This structure gives Potanin considerable influence over the joint venture’s strategic direction. T‑Technologies President Stanislav Bliznyuk said the Selectel investment will allow the company to leverage the cloud provider’s extensive infrastructure for AI product development. The move aligns with Russia’s broader push to strengthen its digital ecosystem.

Selectel’s infrastructure is considered a valuable asset for companies building large‑scale AI systems. Its data centers support a wide range of enterprise and cloud workloads. The company has become an important player in Russia’s cloud market as demand for computing power continues to rise. Potanin’s investment signals confidence in the sector’s long‑term growth potential.

Selectel’s Growth Highlights Rising Cloud Demand

Selectel reported strong financial performance in 2025, with revenue for the first nine months rising 42% year‑on‑year to 13.5 billion roubles. This growth reflects increasing demand for cloud services across Russian enterprises. Companies developing AI models require significant computing resources, making cloud providers central to the country’s technological ambitions. Selectel’s expanding footprint positions it as a key infrastructure partner for both private and public sector initiatives.

The company operates multiple data centers and offers services ranging from cloud hosting to network solutions. Its infrastructure is used by businesses seeking scalable computing environments. As AI workloads grow more complex, cloud providers like Selectel are expected to play an even larger role. The investment from Catalytic People may accelerate Selectel’s ability to expand capacity.

Russia’s cloud market has been undergoing rapid transformation. Domestic providers have gained prominence as geopolitical tensions and sanctions reshape the technology landscape. Companies increasingly rely on local infrastructure to ensure continuity and compliance. Selectel’s strong revenue growth suggests that demand for domestic cloud services remains robust.

The acquisition also reflects a broader trend of consolidation and strategic investment in Russia’s tech sector. Major industrial groups are diversifying into digital infrastructure to support future growth. Potanin’s involvement underscores the importance of cloud computing in enabling AI development. Selectel’s trajectory indicates that the sector will continue to attract significant investment.

Implications for Russia’s Technology Ecosystem

Potanin’s growing portfolio of technology investments signals a shift in focus among Russia’s largest business leaders. His stake in Yandex and now Selectel suggests a long‑term commitment to digital infrastructure. These moves align with national priorities aimed at strengthening domestic capabilities in AI and cloud computing. The government has repeatedly emphasized the need for technological independence.

T‑Technologies expects to integrate Selectel’s cloud resources into its AI development pipeline. This integration could accelerate the creation of new AI products and services. Companies across Russia are exploring ways to incorporate AI into operations, from finance to industrial automation. Selectel’s infrastructure may help support these efforts by providing scalable computing environments.

The acquisition may also influence competition within Russia’s cloud market. Selectel’s strengthened backing could position it more competitively against other domestic providers. Increased investment may lead to expanded data center capacity and improved service offerings. These developments could benefit companies seeking reliable local cloud solutions.

Russia’s push for home‑grown AI models is likely to continue shaping investment patterns. Cloud infrastructure remains a foundational component of AI development. Potanin’s involvement highlights the strategic importance of this sector. Selectel’s growth trajectory suggests that cloud providers will remain central to Russia’s digital transformation.