Import substitution in Russia

State support for import substitution

2023: Government sets priority directions for Russia's technological sovereignty

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. Read more here.

2022

The government has formed a pool of projects worth 5.2 trillion rubles

On October 9, 2022, it became known that the Government of the Russian Federation formed a pool of projects in critical areas of import substitution with a total value of 5.2 trillion rubles until 2030.

As First Deputy Minister of Industry and Trade Vasily Osmakov told Vedomosti, 2.3 trillion rubles will be provided in the form of soft loans, another 2.9 trillion rubles from investors. In the federal budget for 2023, 5 billion rubles were reserved for subsidizing rates for import substitution projects, as well as state guarantees. Until 2030, the state will require 123.6 billion rubles to subsidize the rate.

The Government of the Russian Federation has formed a pool of projects in critical areas of import substitution

The formed pool included 162 main projects. The chemical industry is more significant than others - 54 projects. This is followed by ferrous metallurgy - 27 projects, timber industry - 18 projects, railway engineering - 16 projects, pharmaceutical industry - 12 projects, auto industry - 8 projects. Five more projects were allocated for metallurgy and construction and road engineering, three projects for the machine tool industry and heavy engineering, two projects in the aircraft industry and three in other sectors of the economy.

The development of a mechanism for financing projects will be carried out Ministry of Industry and Trade together with the Ministry of Finance ВЭБ.РФ banking sector. Offset contracts of state contracts with counter investment obligations will be concluded with enterprises. This is the name of a long-term agreement with counter-investment obligations that cover the chain from manufacturer to consumer.

Preferential loans to business will be provided for 10-15 years under the guarantee of the state corporation ВЭБ.РФ. To issue them, the Ministry of Industry and Trade and the Ministry of Finance will launch a new investment platform, within which, among other things, the interest rate will be subsidized.^[1]

A study of international experience in the formation of the ICC of state policy in the field of import substitution was presented

On September 23, 2022, the company Reksoft Consulting"," a division of the Reksoft group responsible for transformational and strategic consulting, shared a detailed analysis of foreign experience in creating state support institutions, planning operational and strategic measures to ensure information and technological import independence. industries The study set itself the goal of identifying the best world practices in state support for the process of import substitution and digitalization in heavy industries of different industries. countries

The study analyzed global initiatives in this area from the 1970s to September 2022. The study pool included both developed Western countries and emerging economies. The material includes the prerequisites of the current [Russia's]] problems with SWOT analysis and detailed experience of foreign countries with highlighting the strengths and weaknesses of each of the models.

Reksoft Consulting experts analyzed the successful experience of public and private institutions PEOPLE'S REPUBLIC OF CHINA (China Competence Center), Malaysia (DIO Digital Investment Office, State Development Program "Industriy4WRD"), Saudi Arabia (Industrial Competence Development Center) and (Germany Industrial Community "Global German Mining Network").

Summarizing the global experience, the Reksoft Consulting study highlights the following key important components of success:

• Creation of competence centers focused on the development and production of solutions for the local market, but with mandatory subsequent scaling outside the country (China, Malaysia).
• Organization of centers for the development of industrial competencies for the training and training of qualified personnel targeted to the requests of various industries (Saudi Arabia, China, Malaysia).
• Creation of Digital Investment Offices, which evaluate, analyze and coordinate digital investment projects (e.g. initiatives in the field of human resources development, digital infrastructure networks, etc.) (Malaysia).
• Active participation of private companies in the creation of international and local industrial communities (with the support of the state) in the form of platforms for business and science interaction in order to ensure quick access to market information and direct contacts, exchange of experience, etc. (China, Germany).
• Implementation of government financing programs aimed at strengthening the capabilities of local vendors to develop, adapt and supply solutions for private industries, state-owned companies and large corporations (grants to small knowledge-intensive enterprises, loans with a state guarantee and/or subsidized interest rate) (China, Malaysia, Germany).
• Creation of specialized funds and agencies to support export-oriented initiatives of IT solution companies (Malaysia, China).

According to the results of our research, the Russian approach, based on the consolidation of the efforts of anchor enterprises of the industry and key vendors, simultaneously with the possibilities of obtaining state support, is generally consistent with successful international experience. At the same time, the fact of insufficient focus on the creation of an export, and not a local product that goes beyond the interests of 1-2 anchor customers is alarming. The situation is also complicated by the difficulties of coordinating the interests of corporations - members of the ICC (industrial centers for the competence of import substitution of digital solutions in key sectors of the economy), a wary attitude to state financing when it comes, in fact, to a venture model of investments, - said Andrei Skorochkin, head of Reksoft Consulting. - The Russian approach with the creation of the ICC is designed for medium-term results within two years and can have a long cumulative effect on the horizon of 10-12 years. In this strategy, the ICC will take the position of coordinators of industry development on import substitution in the near future, in the future - they will be able to play the role of trend setters of technologies and platforms for interaction between industrial companies and developers.

Import substitution of drugs

Main article: Import substitution of drugs in Russia

Information Technology

• Import substitution of information technologies in Russia

• IT Incentives and Restraints for Import Substitution

• ICT Import Substitution Competence Center (CKIT)

• What if foreign IT products are banned in Russia? Seven simple steps

Software

• Import substitution of software in Russia

• Import Substitution Plan for Software in Russia

• Register of Russian Software

• Import substitution of software in the public sector

• Import substitution in the EDMS area: in a privileged position

• Import substitution is a security guarantee for Russian vendors

• Import substitution of mobile applications

Computing, Electronics and Communications Equipment

• The battle for the ICT infrastructure market in Russia: will domestic manufacturers be able to turn the tide?

• Import substitution of computer equipment and microelectronics

• Regulation of public procurement of radioelectronic products

• Import substitution of computer equipment in Russia: the present and future of the industry. TAdviser Overview

Information Security Systems

• Import substitution in the field of information security

Import substitution of information technologies in banks

• Import substitution of information technologies in banks

Import substitution in state-owned companies

• Import substitution in state-owned companies

Import substitution in the field of education

• Import substitution of software in higher educational institutions

Import substitution of IT in industry

Main article: Import substitution of information technologies in industry

Medical devices

• Import substitution of medical devices

Conferences

• TAdviser successfully held the conference "Import Substitution: Real Experience." Report and photo

Interviews and surveys

2022

• IT import substitution drivers in Russia

• Prospects for import substitution of software in Russia

• How IT companies assess software import independence in federal and regional authorities

2017

• The largest suppliers of IT solutions from the register of domestic software

• Advantages of replacing foreign IT solutions with domestic ones

• Main risks of IT import substitution

• The main problems and obstacles to import substitution of IT in Russia

• How did IT import substitution affect the business of foreign vendors? A look from Russia

• TAdviser interview: Sber Tech CEO Alisa Melnikova on the main tasks, import substitution and Agile transformation

2016

• Sergey Petrov, "Galaxy": Import substitution allowed Russian IT companies to get out of the shadow of Western suppliers

• V. Gabarev, CROC: Import substitution gave impetus to the use of open source software in the corporate sector

• What impact did the import substitution trend have on the Russian EDMS/ECM market?

• Import substitution prospects in the domestic ERP market. Expert opinions

2015

• Pavel Tsiporin, Chief information officer of the Khanty-Mansi Autonomous Okrug: Import substitution is an urgent topic for the regions, but there are a number of problems

• DIRECTUM: Import substitution is a reason to think about developing the quality of products and services in the long term

• Alexey Petrushov: Import substitution is a painful procedure, it must be carried out smoothly

Notes