NIZHNY NOVGOROD, May 18. /TASS/. Russia must be proactive when developing the information technology sector, not just creating similar products, but anticipating changes in the market, Prime Minister Mikhail Mishustin said at the Digitalization of Industrial Russia conference.

He noted that some Russian services are already demonstrating better results than their foreign counterparts.

TASS has compiled the premier’s key statements.

Import substitution and transition to forecasting

Advances in import substitution and development have reduced the urgent need for domestic software by a factor of four in recent years, when industrial competence centers began operating: "And now there are almost four times fewer of them."

Most of the key functionality of the products of foreign suppliers that have left has already been implemented in Russian solutions available on the market, "without the need for additional modifications."

Russian software is "becoming a full-fledged replacement for Western analogues": "At the same time, compatibility with domestic technological infrastructure is ensured."

Russia has moved from searching for replacements for the departed Western products to producing its own: "We have moved from searching for replacements for the departed Western products to the active introduction of our own."

Russia must "be proactive" in developing the information technology sector, "not just create similar products to meet the needs of organizations, but also anticipate changes."

Superiority of Russian services

Some Russian services are already demonstrating better results "across a number of parameters" than their foreign counterparts: "First and foremost, in terms of flexibility of setup and the efficiency of technical support."

Demand for Russian software

Russian systems are no longer perceived as simply accounting and reporting tools, but as "reliable assistants for improving the efficiency and competitiveness of production."

The share of IT in the Russian economy has doubled in six years, with sales of domestic software and products having grown 4.5-fold: "Over the past six years, its share in GDP has doubled, while sales of domestic products and services in this sector have increased almost 4.5 times over the same period, exceeding 5 trillion rubles by the end of last year."

Russian software exports abroad have increased by 15% since 2022: "According to the Bank of Russia, their exports have grown by 15% for the first time since 2022."

Russian process automation systems have "demonstrated their demand," with half of all companies already having experience using them.

Russian companies prefer domestic software: "It is already used on more than ten million workstations, providing financial and business process management at thousands of enterprises across the country."

The Russian cloud services market has proven their convenience and advantages, demonstrating fourfold growth over the past six years: "The cloud services market has grown more than fourfold in six years. Domestic companies have completely transitioned to this Russian-developed infrastructure."

AI

Over half of Russian companies are already "engaged in the process of implementing" artificial intelligence technologies into their operations: "So far, only a few have reached the stage of industrial operation. This means the growth potential is even greater."

"In Russia, it [the artificial intelligence market] is expanding almost twice as fast as the rest of the information technology sector."

Software development

Modules for designing aircraft engines, complex surfaces, and metal structures have appeared in Russia: "Modules for designing aircraft engines, complex surfaces, and metal structures have already appeared. A separate subsystem for creating products from polymer composite materials has also been created. It was used to create components for the PD-14 engine, one of the most high-tech products in Russian industry."

This once again proves that "domestic programs are capable of accomplishing serious tasks."

Russia has completely switched to using its own software in sectors such as electric power and oil and gas, while in construction and transportation, the share of domestic software exceeds 90%: "In aircraft, engine and shipbuilding, general and railway engineering, light industry, transport, logistics, trade, finance, construction and housing and communal services, this figure exceeds 90%."

Improvement of legal support

The decision to exempt transactions involving the sale of rights to Russian software from value-added tax (VAT) will remain in effect and will be extended to cloud services: "This VAT exemption will remain in full force. Furthermore, its effect extends to software provided in the form of cloud services."

Russia is working to improve the legal framework for modern construction solutions, specifically the creation of "building information modeling software": "Almost every second apartment building in Russia is already being constructed using such software. And gradually, design companies and developers are switching to domestic software."

Investment

More than two-thirds of the most significant projects have been successfully implemented, with seven rubles of corporate investment coming for every ruble of government funds: "Their total value is about 84 bln rubles. <…> These are primarily the resources of the corporations themselves, which attracted about seven rubles of their own funds for every ruble of budget funds."

"Of the 170 initiatives initially selected, more than two-thirds have already been successfully implemented."