Funding has softened hardship, offering relief
Russia is resuming the funding of centers of competence for software import substitution, with an anticipated allocation of 3.2 billion rubles for significant IT projects in the second wave. The total investment, including funds from software anchor customers, is expected to reach 33 billion rubles by 2027.
According to a Kommersant report, the resumption of grants for projects within industrial competence centers (ICC) has been confirmed by the office of Deputy Prime Minister Dmitry Grigorenko. The majority of the planned 49 projects will be implemented by 2027 with additional investments from software anchor customers such as "Avtotor," "DSK-Ural," PAO "Rostelecom," and others.
Grantees have the option to extend the implementation deadline by a maximum of six months with appropriate sanctions if the extension is not adhered to. In a statement to Kommersant, the office of Deputy Prime Minister Dmitry Grigorenko affirmed their commitment to selecting and implementing competitive, high-impact projects that can match foreign counterparts.
Dmitry Grigorenko emphasized the significance of evaluating the results based on value, rather than solely on the monetary amounts involved, during a session at the St. Petersburg International Economic Forum in 2024. Mikhail Mishustin announced the commencement of the second wave of funding for ICCs two years ago, allocating an initial 11 billion rubles. Funding was temporarily halted following the arrest of Maxim Parshin, Deputy Minister of Digital Development, on charges related to the allocation of funds. In December 2024, Deputy Prime Minister Dmitry Grigorenko called for the suspension of the selection process and a review of applicants. The resumption of grant issuance was announced in March 2025.
The Russian Ministry of Digital Development reported a high demand for industrial software essential for production automation and flexibility. They mentioned that they carefully choose particularly significant projects and conduct additional assessments to gauge their impact. Grants will continue to be given to flagship initiatives in sectors like foreign software replacement and other priority areas designated by the Industry Development Fund.
"Rostelecom" confirmed to Kommersant that they are implementing the "Smart Optical Transport" project with T8 as part of the second wave. The project aims to replace management solutions for backbone optical fiber networks previously handled by Nokia and Huawei.
Previously, software developers expressed hesitance in utilizing Russian state funds due to burdensome reporting requirements for received funds. Alexei Smirnov, director of "Baikal SPB," noted that companies receiving funds had to provide regular reports not only on software development but also on its commercialization. He pointed out that the risks were high due to uncertain software demand.
Conversely, representatives from the software industry expressed optimism about the current funding wave. They highlighted that producers would now provide products for which government-guaranteed demand has already been established. Svetlana Leonova, deputy general director of "TopS Business Integrator," noted that the sector with the highest dynamics and demand is machine-building. Companies need to adjust their financial models to align with the state's goals of increasing the use of domestic software in all sectors of the economy, according to Mikhail Khazov, director of government relations at Postgres Professional.
Renat Lashin, executive director of the Association for the Development of the Russian Software Industry, expressed the need to address the issue of state support for the replication of successful projects in related industries through the provision of preferential loans, subsidies, tax credits, or other tools.
Sources:* Kommersant* Industry Development Fund reports* Regional government allocations
- The "Smart Optical Transport" project, implemented by "Rostelecom" as part of the second wave, aims to replace management solutions for backbone optical fiber networks previously handled by foreign companies like Nokia and Huawei, exemplifying Russia's focus on technology.
- The software industry representatives expressed optimism about the current funding wave, highlighting that producers would now provide products for which government-guaranteed demand has already been established, indicating a shift towards technology self-sufficiency in Russia.
