Most publishers sold games on Steam's Russian store for far cheaper than they did on the US or UK stores - a friend of mine bought a 4-pack of copies of Dead Island (back when that was a new-ish game and the 4-pack was going for upwards of $60 on the US store) from Russia for like $20.
Then, Valve started cracking down on cross-region purchases, making it so that you could still add games from other regions but could not actually play them until your IP was detected as being in one of those regions. The problem was that it was applied so that more expensive regions had fewer restrictions - US-bought games can be played anywhere, as can AUS/NZ ones, but games purchased from Russia or a few other regions can't be played outside of those specific regions. This means that if you're from the US and go on vacation in Russia, you can play Counter-Strike GO while in Russia, but if you're Russian and go on vacation to the US you can't play CS:GO while in the US.
It's a ridiculous double-standard, and a counter to geo-blocking would remove a lot of it.
It makes perfect sense, since the market for these games is massively skewed. Many customers are only interested in particular titles; they want GTA V and don't regard "Gangster Sim III" as a viable alternative. Since the publishers have a monopoly over their titles, they can set the prices to whatever the market will bear, regardless of how much it costs them to produce each unit (which, FYI, is $0 since the game's already finished and released).
If the market were allowed to decide, ie. if it was legal for anyone to sell copies of already-finished games, rather than just the publishers, then the prices would crash right down to near-zero.
Keep that in mind next time some copyright troll is denouncing "pirates" for being "anti-capitalist", when in fact it's copyright which is responsible for this anti-competitive crap.