Technological sovereignty of Russia

• Import substitution of software in Russia Overview of TAdviser 2022
• Estimates and prospects of software import substitution in Russia
• Import substitution of information technologies in industry
• National Development Goals of Russia

Chronicle

2024

The volume of technological sovereignty projects reached ₽1 trillion

The total cost of technological sovereignty and structural adaptation projects in Russia reached ₽977 billion, quadrupling since December 2023, which became known on November 5, 2024.

According to Vedomosti, 27 projects have been selected for financing, of which seven in the amount of ₽225,8 billion are being implemented with the participation of credit funds ВЭБ.РФ. First Deputy Chairman of the ВЭБ.РФ Alexei Miroshnichenko announced the planned increase in the volume of projects to ₽1,5 trillion by the end of 2024.

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The distribution of funding by industry demonstrates priority areas: shipbuilding - ₽391,8 billion, construction and development of industrial parks - ₽170,2 billion, battery production - ₽113,9 billion.

On October 17, 2024, the Russian government supported the initiative of the Ministry of Economic Development to increase the size of ВЭБ.РФ 's financial participation in the Project Financing Factory program from ₽500 billion to ₽600 billion. Within the framework of the program, 39 projects are being implemented with a total value of ₽4 trillion, ₽915 billion were issued under syndicated loan agreements.

The list of industries entitled to preferential lending and state support includes 13 areas of industry. Among them are aviation, medical, machine tools, chemical industry, automotive industry, shipbuilding, pharmaceuticals, electronics, power, oil and gas, agricultural, specialized and railway engineering.

According to ВЭБ.РФ forecasts, by the end of 2024, the total volume of supported projects will amount to ₽22 trillion. Priority investment areas are industry, urban infrastructure, foreign economic activity, support for small and medium-sized businesses, as well as innovative developments.^[1]

The government is allocating ₽6 trillion to achieve Russia's technological leadership. Where the money will go

The Russian government plans to invest ₽6,091 trillion between 2025 and 2027 to implement measures to achieve the country's technological leadership. This became known on October 1, 2024 from the bill on the federal budget submitted to the State Duma.

According to ComNews, funding will be distributed as follows: in 2025 - ₽1,646 trillion, in 2026 - ₽2,101 trillion, in 2027 - ₽2,343 trillion. The funds will be directed to fulfill the message of the President of the Russian Federation and stimulate the development of priority sectors of the economy.

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Freepik

A significant part of the funds will be allocated to national technological leadership projects (PNTL). The Industrial Transport Mobility Project provides ₽678,7 billion, Stanki - ₽234,4 billion, New Materials and Chemistry - ₽55,6 billion, Unmanned Aviation Systems - ₽112,1 billion, and New Nuclear and Energy Technologies - ₽46,9 billion.

In addition, ₽3,75 trillion is planned to be spent on the development of automotive, agricultural and specialized engineering. ₽175,3 billion is allocated for the development of radio and microelectronics.

Nikita Danilov, General Director of Fly Drone, noted that the allocated funds for the unmanned industry are enough for significant progress. According to him, financing is necessary not only for the production of unmanned aircraft systems, but also for import substitution of individual units and components, as well as infrastructure development.

ARPE Ivan Pokrovsky The chief executive believes that to achieve leadership in microelectronics, focusing on priority areas is needed rather than spraying funds across the technology spectrum.

Chairman of the Board of Directors of BASEALT Alexei Smirnov stressed the importance of tax incentives and market expansion for domestic software developers.

The Ministry of Finance also announced the introduction of a federal investment tax deduction from 2025, which will allow companies to reduce income tax by spending on the creation and modernization of fixed assets and intangible assets.^[2]

Russia adopted a law providing the foundation for the country's technological sovereignty

On June 18, 2024, the deputies adopted the bill "On technological policy in the Russian Federation." This document, developed on behalf of President Vladimir Putin, is designed to ensure the country's technological sovereignty, as well as create conditions for the accelerated development and introduction of technological innovations to solve socio-economic problems.

One of the key goals of the technology policy is to achieve the competitiveness of domestic high-tech products and the effectiveness of its creation through the introduction of technological innovations. It is assumed that the bill will contribute to improving the quality and standard of living of citizens of the Russian Federation, ensuring the country's defense and state security.

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Maxim Topilin, Chairman of the Economic Policy Committee, emphasizes that the main goal of the bill is "to provide a legislative foundation for the country's technological sovereignty." According to him, it is planned to introduce critical and end-to-end technologies by Russian companies based on their own developments, the formation of long-term demand and supply for high-tech products, the creation of favorable conditions for the implementation of technological policy and the development of technology infrastructure. Plus, qualified specialists will be trained for this.

The President of the Russian Federation, the Federal Assembly, the Government, the Bank of Russia, the Russian Academy of Sciences, as well as the executive bodies of the constituent entities of the country can participate in the formation of technological policy. The authorities will approve targets for ensuring technological sovereignty, medium-term and long-term development of technologies in the sectors of the economy, as well as the procedure for measuring and monitoring these indicators and the effectiveness of technological policy.^[3]

The government submitted to the State Duma a bill on technological policy

On May 23, 2024, the government submitted to the State Duma a bill on technological policy in the Russian Federation. The document is designed to ensure the digital independence of the country based on domestic technologies.

It is reported that the document was developed in order to ensure the technological sovereignty of Russia. In addition, it is aimed at creating conditions for the accelerated development and implementation of technological innovations to solve social and economic problems. Among them are named improving the standard of living of citizens, ensuring the defense and security of the country, as well as increasing the competitiveness of domestic high-tech products and the efficiency of its production by developing and introducing technological innovations.

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Among the key tasks are: the introduction by Russian legal entities of critical and end-to-end technologies based on their own development lines; creation of various types of high-tech products; organization of international cooperation in the field of technology development; creation and development of the necessary infrastructure for the development of technologies, including for the training of qualified specialists. It is planned to form favorable conditions (legal, economic, organizational and other) for the implementation of the technological policy.

The draft law includes the President of the Russian Federation, the Federal Assembly of the Russian Federation, the Government of the Russian Federation, the Bank of Russia, the Russian Academy of Sciences, and the executive bodies of the constituent entities of the Russian Federation. It is expected that the bill will help in the implementation of domestic projects of a full innovation cycle based on its own lines of technology development. This will reduce the volume of imports of high-tech products, "will create new points of economic growth and sources of tax revenues."^[4]

2023

What Prime Minister Mishustin said about IT during a speech with a government report

On April 3, 2024, Prime Minister Mikhail Mishustin spoke in the State Duma with a report on the results of the activities of the Government of the Russian Federation for 2023. The main theses on digitalization and IT development, which the head of the Cabinet of Ministers spoke about, were allocated by the Ministry of Digital Development of the Russian Federation in its Telegram channel.

Mishustin recalled that the president Russia Vladimir Putin set the task of strengthening the country's technological sovereignty. As part of this task, by the beginning of April 2024, the government is completing the formation of large projects to organize its own production of significant types of science-intensive products, including microelectronics components, smart machines, gas turbines and medical equipment.

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Russian Government

Ten initiatives to develop end-to-end technologies have been launched. Agreements have been concluded with kompa­niyami leaders in their areas. It was possible to build effective work with them in such areas as artificial intelligence, quantum computing, software, hydrogen power, new materials and a number of others. The total amount of financing for these projects amounted to about 137 billion rubles. Of these, almost three quarters are business funds, "Mishustin said during a government report.

He also noted that in 2023 more than 8 thousand high-tech startups received state support, thanks to which more than 100 thousand jobs appeared in innovative areas.

The Prime Minister also noted that in 2023, about 5 thousand products were included in the register of Russian software, and the share of such decisions in state-owned companies tripled. By the end of 2024, state organizations should completely switch to domestic software in certain categories, remind Mishustin.

In addition, he drew attention to the fact that a significant part of all funds - budgetary and private, attracted to finance projects of technological sovereignty, was directed to research and development in 2023. For their implementation, high-quality digital solutions are needed, the head of the Cabinet emphasized.^[5]

Mishustin instructed to work out the regulation of the registration of medical technologies to achieve the technological sovereignty of the Russian Federation

At the end of December 2023, Prime Minister Mikhail Mishustin instructed the Ministry of Health and the Ministry of Industry and Trade to work out the issue of accelerating the mechanism for registering drugs in Russia, as well as to update the "road maps" for localizing the production of drugs and medical devices. Read more here.

Russia will invest 65 billion rubles in high-tech projects in 2024

In December 2023, Prime Minister Mikhail Mishustin announced that Russia will invest more than 65 billion rubles in 2024 high-tech projects. Their implementation is aimed at achieving the country of technological sovereignty, the Prime Minister noted.

According to Mishustin, large industrial projects with a total investment of at least 10 billion rubles for each project will be implemented in the next seven years. The first 10 projects by the end of 2023 have already been approved. In addition, work is underway to update road maps of high-tech directions.

Mikhail Mishustin announced that Russia will invest more than 65 billion rubles in 2024 high-tech projects

Our scientists, innovators are tireless enthusiasts. They think boldly and outside the box, believe in their idea. Today they must have all the conditions for conducting fundamental and applied research, creating critical technologies, "said Mikhail Mishustin, whose words are quoted by the press service of the Ministry of Education and Science of the Russian Federation.

At the end of December 2023, the head of the Cabinet of Ministers instructed to approve in 2024 passports of large projects of technological sovereignty, involving the development of production based on its own development lines. We are talking about megaprojects that relate to the production of domestic aircraft and ships, drones, diesel engines, machine tools, chemical, electronic and radioelectronic products, as well as the development of the nuclear industry and the production of liquefied natural gas based on domestic equipment and technologies.

First Deputy Prime Minister Andrei Belousov, as well as Deputy Prime Minister Denis Manturov and Alexander Novak in the areas of jurisdiction, were entrusted to ensure the approval of passports of these projects.

The Ministry of Economic Development and the Ministry of Industry and Trade was entrusted with submitting proposals for a mechanism for determining customers of equipment and products created as a result of the implementation of megaprojects until January 22, 2024. The same ministries, together with the Ministry of Education and Science, need to prepare proposals for a model for managing the life cycle of megaprojects by February 1, 2024.^[6]

Program for 200 billion rubles. The government introduced special loans for projects of technological sovereignty of Russia

Prime Minister Mikhail Mishustin signed a decree on the launch in Russia of a new credit program for projects aimed at achieving the country's technological sovereignty. The corresponding document was published on December 7, 2023.

According to the decree, the concept of a technological loan is introduced into circulation. The amount of surety on such loans will vary from 10 to 50% of the principal amount that will be provided by the ВЭБ.РФ development company for a period of three to 15 years. The total credit volume will be about 200 billion rubles. Investors with projects with a total value of 1 billion to 20 billion rubles will be able to apply for a guarantee on technological loans, while the share of the borrower's own funds should be at least 20%.

According to Mikhail Mishustin, such assistance will open more industrial enterprises in the country. In general, support measures working for Russian entrepreneurs allow them to launch the production of critical equipment so as not to depend on foreign suppliers. The new program will cover the following industries:

• the aviation industry;
• automotive industry;
• railway engineering;
• the medical industry;
• oil and gas engineering;
• agricultural engineering;
• specialized mechanical engineering;
• machine tool industry;
• shipbuilding;
• pharmaceuticals;
• the chemical industry;
• electronics;
• power.

As explained in the press service of the Cabinet, those industries in which the level of localization of production is at least 50% are among the priorities. This list also includes industry areas that are critical for ensuring technological sovereignty.

Government of the Russian Federation Resolution of December 2, 2023 No. 2064

The government approved the concept of technology policy

The Russian government approved the concept of the draft law on the country's technological policy and completed all the main conciliation procedures for it with the Ministry of Finance and the security forces. First Deputy Prime Minister Andrei Belousov announced this at a meeting with Russian President Vladimir Putin. The transcript on the Kremlin website was published on November 7, 2023.

Belousov drew attention to the fact that this law implements the technological sovereignty of Russia. It contains three main legal novellas:

• the first is the creation of a legal framework for the implementation of technological sovereignty projects. We are talking about the largest projects - over 10 billion rubles of investments that are aimed at creating a specific product line;
• the second novella concerns projects of so-called end-to-end technologies. Similar technologies already exist - for example, artificial intelligence, but Russia does not have a regulatory framework to implement them. The law closes this gap, Belousov said;
• the third novella involves the creation of a register of small technology companies, "which, on the one hand, will serve as a showcase for large investors, and on the other hand, provides a concentration of support measures," the Deputy Prime Minister added in a conversation with Putin.

The government approved the concept of the bill on the country's technology policy

In turn, the Russian leader instructed not to shift the terms of work on the law on technological policy.

[Это] is very important. I ask you, continue to do this so that he [the bill] does not go somewhere "to the right," the president set the task after listening to Belousov's report.]

The draft law on technological policy was posted on the portal of draft regulatory legal acts on September 25, 2023. The explanatory note to it states the following:

The purpose of the draft federal law is to ensure the technological sovereignty of the Russian Federation and create conditions for the accelerated development and introduction of technological innovations to solve socio-economic problems.[7]

Russia will legislate the concept of technological sovereignty

The continuation and development of the concept that we approved will be the law "On Technological Policy." He primarily highlights the subject of regulation - technological policy. Previously, such a term simply did not exist. It will determine its tasks, goals, principles. And this document, in fact, just constitutions, normatively enshrines the concept of technological sovereignty. Previously, everyone invested in him what seemed important to him, - said Dmitry Chernyshenko.

In particular, the law will determine the list of subjects of technological policy, as well as spell out their powers and mechanisms of interaction.

They are associated with the localization on the territory of our country of the production of the necessary drugs, medical devices, equipment, the production of machine tools, electronic and radioelectronic products, ships and ship equipment, as well as with the development of unmanned aircraft systems, - said Mikhail Mishustin.

Special attention in the Concept is also paid to supporting scientific research of higher and professional education, including advanced engineering schools, as well as financial assistance to production, including through government purchases and concessional lending mechanisms .

So, by 2030, the share of domestic high-tech products should reach 75%. Our country is at the stage of rapid technological development, so such indicators look quite achievable in the coming years. Moreover, everyone who works in this direction has an important goal - to achieve complete import substitution and import independence of the country in the face of the threat of illegal behavior of foreign producers. At the same time, the new law "On Technological Policy" is also intended to determine and legislate the concept of technological sovereignty, which is also important. Today, this concept, although interpreted in different ways, is understandable to everyone - our country must accumulate its strength so that citizens are absolutely confident in the reliability of those technologies that are presented on the market and used in different spheres of the economy, - said the deputy.

Central Bank introduces stimulating regulation for technological sovereignty projects

On June 13, 2023, the Central Bank of the Russian Federation announced the introduction of stimulating banking regulation for lending to projects of technological sovereignty and structural adaptation of the economy. This will allow banks with a universal license to reduce the burden on capital on targeted loans issued for the implementation of such projects after September 30, 2022, the press service of the regulator said. Read more here.

Mishustin approved the priority areas of Russia's technological sovereignty in the field of medical equipment

In April 2023, Prime Minister Mikhail Mishustin signed a decree approving priority areas for projects aimed at ensuring the technological sovereignty of Russia. The work will be carried out in 13 priority areas. Read more here.

The government has determined the priority areas of technological sovereignty of Russia

The Ministry of Economic Development has determined the priority areas of technological sovereignty. The corresponding document, developed with the participation of the Ministry of Finance of the Russian Federation, the Ministry of Industry and Trade and the Central Bank, was published in mid-February 2023.

According to the project, priority areas are divided into two groups:

• projects of technological sovereignty (this includes products of the following types: medical, pharmaceutical and chemical industries, machine tool industry and heavy engineering, shipbuilding, electronic and electrical industry, energy and aviation industry, as well as automotive industry, railway, oil and gas, agricultural and specialized engineering);
• projects of structural adaptation of the economy (this includes infrastructure projects and the provision of services, for example, the construction of railways, ship repair services, aircraft maintenance, data processing services, software development, services for the transportation of goods by space, etc.).

House of the Government of the Russian Federation. Moscow

According to the explanatory note, the following approach was used in the selection of directions of taxonomy: the taxonomy included areas of projects related to the production of products or the provision of services, the level of localization of which is less than 50%, including taking into account industry import substitution plans of the Ministry of Industry and Trade of Russia, approved by the orders of this department. Also, for the selection of directions, the structure of suppliers of various types of products was analyzed. If the structure of suppliers was not sufficiently diversified or a large share of imported products fell on suppliers from unfriendly countries, then this type of product was to be included in the taxonomy, the document says. GOVERNMENT OF THE RUSSIAN FEDERATION RESOLUTION

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