The plenary session is titled “Made in Russia: Digital Transformation in the Industry.”
Mikhail Mishustin toured the Digitalisation of Industrial Russia exhibition, accompanied by Denis Manturov, Dmitry Grigorenko, Minister of Digital Development, Communications, and Mass Media Maksut Shadayev, Presidential Plenipotentiary Envoy to the Volga Federal District Igor Komarov, and Nizhny Novgorod Region Governor Gleb Nikitin
Mikhail Mishustin toured the Digitalisation of Industrial Russia exhibition. With Alexei Likhachev, Director General of the State Corporation Rosatom, and Pavel Yakovlev, Director General of the Ural Automotive Plant
Mikhail Mishustin toured the Digitalisation of Industrial Russia exhibition, accompanied by Denis Manturov, Dmitry Grigorenko, Minister of Digital Development, Communications, and Mass Media Maksut Shadayev, and Alexei Likhachev, Director General of the State Corporation Rosatom
Mikhail Mishustin toured the Digitalisation of Industrial Russia exhibition
Mikhail Mishustin toured the Digitalisation of Industrial Russia exhibition. With Tigran Khudaverdyan, Director General of Yandex
Mikhail Mishustin toured the Digitalisation of Industrial Russia exhibition. With Denis Manturov and Minister of Digital Development, Communications, and Mass Media Maksut Shadayev
Mikhail Mishustin toured the Digitalisation of Industrial Russia exhibition. With Denis Manturov and Minister of Digital Development, Communications, and Mass Media Maksut Shadayev
Mikhail Mishustin toured the Digitalisation of Industrial Russia exhibition
Mikhail Mishustin toured the Digitalisation of Industrial Russia exhibition
Mikhail Mishustin toured the Digitalisation of Industrial Russia exhibition
Mikhail Mishustin attends the 11th Digital Industry of Industrial Russia conference
Mikhail Mishustin attends the 11th Digital Industry of Industrial Russia conference
Mikhail Mishustin attends the 11th Digital Industry of Industrial Russia conference
Mikhail Mishustin attends the 11th Digital Industry of Industrial Russia conference
Mikhail Mishustin toured the Digitalisation of Industrial Russia exhibition, accompanied by Denis Manturov, Dmitry Grigorenko, Minister of Digital Development, Communications, and Mass Media Maksut Shadayev, Presidential Plenipotentiary Envoy to the Volga Federal District Igor Komarov, and Nizhny Novgorod Region Governor Gleb Nikitin
The Digitalisation of Industrial Russia is the country’s premier business forum dedicated to the digital economy and technological advancement. Over the past eleven years, it has evolved into the most authoritative platform for dialogue between government and businesses, bringing together key stakeholders to discuss the digital transformation of society and the rapid modernisation of strategically important industries. The conference plays a pivotal role in accelerating the development of Russia’s digital ecosystem and advancing the national objective of technological leadership.
Each year, the conference attracts thousands of participants from both Russia and abroad, including representatives of large and medium-sized enterprises, government institutions, scientific organisations, and the startup community.
The central theme this year is the digitalisation of industry – the foundation of the Russian economy. Throughout the business programme, participants will examine approaches to scaling Russian technological solutions, review practical implementation cases, and address questions of international technological cooperation. Particular emphasis will be placed on technologies with direct industrial applications, including industrial software, digital twins, robotics, automated process control systems, computing infrastructure, and other advanced digital technologies.
The technology exhibition spans three pavilions and features solutions from international participants representing the BRICS and EAEU member states. It presents both technologies already implemented this year and projects currently under development at an advanced stage of readiness. The exhibition is designed to foster substantive dialogue among industrial customers, systems integrators, and technology vendors.
The conference’s business agenda will include 170 sessions dedicated to the digital transformation of key economic sectors and international collaboration within the global technology market.
Delegations from over 40 countries are expected to attend the conference.
The international business programme will feature discussions on cooperation with the United Nations, the agro-industrial sector, the evolution of financial infrastructure in the digital age, and the development of digital ecosystems in emerging economies. Bilateral sessions with the India will also take place.
The international exhibition will include a national pavilion from Belarus, alongside corporate stands representing companies from India, China, Uzbekistan, and Angola, as well as an information stand hosted by the United Nations Industrial Development Organisation. In addition, a dedicated discussion platform – the Video Conference Room for Digital Attachés – will provide consultation opportunities focused on expanding technology exports into international markets.
Excerpts from the transcript:
Mikhail Mishustin: Good afternoon, friends.
Colleagues,
I would like to welcome all the guests and participants of this major conference, which is dedicated to the digital transformation across key industrial sectors.
This platform, now convening for the eleventh time, has traditionally brought together leading industrial customers and software developers, distinguished experts, and government representatives – everyone whose contributions play a vital role in fulfilling the President’s objective of strengthening technological sovereignty and achieving independence from foreign software solutions.
We have progressed from seeking replacements for Western products to actively implementing domestic technologies. This transformation was clearly demonstrated today at the exhibition.
Industrial competence centres, now established across all key sectors of industry, have significantly accelerated this transition. They have created a fundamentally new framework for collaboration between industry leaders and software developers. Enterprises have been able to consolidate and clearly articulate their requirements for digital solutions, while developers now benefit from transparent, long-term demand and strategic direction.
Equally important is the agility demonstrated by software companies in adapting their existing products to meet the highly specialised and often complex requirements of individual enterprises, taking into account their unique operational characteristics.
The outcome of these coordinated efforts is already evident: hundreds of industrial systems have been successfully implemented, managing production facilities, logistics networks, and entering large-scale deployment. I would like to extend sincere appreciation to everyone whose professionalism and dedication contributed to these achievements.
Friends, the IT sector continues to be among the fastest-growing segments of our economy. Earlier today, [Nizhny Novgorod Region Governor] Gleb Nikitin highlighted his region’s achievements, noting that the IT industry accounted for 47 percent of growth in the regional gross product. On the national level, the sector’s contribution to GDP has doubled over the past six years. During the same period, sales of domestic IT products and services increased nearly 4.5-fold, exceeding 5 trillion roubles by the end of last year. Large enterprises are increasingly selecting these domestic solutions for implementation within their operations.
There is also international interest in Russian digital products and software services. According to the Bank of Russia, exports in this segment grew by 15 percent for the first time since 2022.
The industry is also attracting a growing number of specialists. Today, it employs more than one million people.
In line with the President’s decision, key support measures for the IT sector have been preserved in this trying time for the country, above all those that directly encourage investment in the design and development of Russian software products.
Among the most significant are reduced insurance premium rates. For accredited IT companies, these rates remain half of those applied to other sectors, enabling developers to reinvest savings into innovation and the creation of new products.
The essential corporate income tax benefit also remains in force. With a rate five times lower than the standard level, companies gain additional financial capacity to expand both their technological capabilities and human capital.
These support measures have demonstrated their effectiveness. Over the past five years, the revenues of 5,500 organisations consistently utilising these incentives have more than tripled, while their workforce has grown by 1.5 times.
At the same time, federal support mechanisms are not the only instruments available.
Currently, nine out of ten accredited IT companies are micro or small enterprises. In order to further improve conditions for their growth, the Government has granted regional authorities the ability to establish reduced tax rates for companies operating under the simplified taxation system (STS). Organisations engaged in software, hardware, and integrated software-hardware development across more than 60 Russian regions are now eligible for these incentives.
Strengthening technological sovereignty requires not only the creation of competitive and in-demand products, but also their widespread adoption. This is why we have introduced mechanisms to ensure that implementing such technologies is not only strategically important but also financially advantageous for businesses.
Expenses related to the purchase of Russian software can now be declared in tax filings using a special double deduction coefficient, enabling businesses to significantly reduce their tax burden.
In addition, accelerated depreciation mechanisms have been introduced for domestically produced software, hardware, and integrated software-hardware systems. For entrepreneurs, flexibility in asset management and the ability to recover investments more rapidly remain critically important.
Furthermore, transactions involving the transfer of rights to Russian software are exempt from value-added tax (VAT). This measure enables businesses to acquire a greater number of licenses and digital products, making the transition to domestic software solutions both technologically smoother and financially less burdensome.
This VAT exemption will remain fully in force and also extends to software delivered through cloud-based services, a segment whose growing range of solutions was clearly demonstrated today.
We will continue to support these initiatives, as we remain confident that investments in the cybertechnology sector generate substantial returns. The industry continues to serve as one of the main drivers of economic and industrial development.
Digital transformation is steadily expanding across enterprises. The proportion of companies utilising application software continues to rise: nearly 70 percent of organisations now rely on specialised financial accounting systems. More than one-third employ key tools for planning, resource management, supply chain coordination, and sales optimization, while integrated design and product lifecycle management systems are currently used by one in five organisations, with a similar share having implemented process automation software – perhaps one of the fastest-growing segments of industry.
Notably, domestic software solutions are increasingly becoming the preferred choice across each of these segments. Today, Russian-developed systems operate on more than 10 million workstations, supporting financial oversight and business process management at thousands of enterprises nationwide.
These systems are no longer viewed merely as tools for accounting and reporting. They have evolved into reliable instruments for improving operational efficiency, strengthening productivity, and enhancing industrial competitiveness.
According to industry experts, Russian software solutions available on the market now replicate most of the essential functionality previously offered by foreign vendors that have exited the market, often with no need of additional modifications.
They are becoming fully capable substitutes for their Western counterparts, while ensuring seamless compatibility with national technological infrastructure.
Last year saw the release of specialised enterprise management systems tailored to the operational requirements of specific industries. These include solutions designed to automate critical business processes in ferrous and non-ferrous metallurgy, blast furnace and steelmaking operations, as well as rolled metal production. The first industry-specific implementation within the electric power sector has also been successfully completed. There are numerous additional examples.
Particularly noteworthy is the progress in modelling and design software – an area widely regarded to be among the most technically demanding, especially in relation to advanced computer-aided design (CAD) systems. Until recently, Russian enterprises relied predominantly on foreign platforms. Today, however, more than half have transitioned to domestic alternatives.
Russian-developed CAD and product lifecycle management systems have now acquired the capability to support collaborative work on a unified digital model. This allows dozens and even hundreds of engineers to simultaneously work on highly sophisticated products.
From the earliest stages of development, calculations are conducted within an integrated virtual environment, enabling engineers to identify issues and optimise designs – which was demonstrated at exhibition stands today – even before physical prototypes are produced. This substantially reduces the need for costly testing and the time necessary for them.
Modules have already been developed to design aircraft engines, complex geometric surfaces, and metal structures. In addition, a dedicated subsystem for designing products made from polymer composite materials has been introduced. Today we discussed with developers that it required specialised design packages and systems. Such technologies have already been applied in the development of components for the PD-14 engine, one of the most technologically advanced industrial products developed in Russia. This serves as compelling evidence that domestic software is fully capable of addressing highly sophisticated engineering challenges.
I would like to emphasise that geometric kernels are a fundament component which lies in the mathematical foundation of all three-dimensional design systems. Russia already possesses several such platforms, and in terms of reliability, processing speed, and the handling of complex curved surfaces, they perform on par with imported equivalents. One of these systems has already been fully adapted to Russian operating systems, delivering high performance while ensuring deep integration with built-in cybersecurity mechanisms. As a result, a fully substituted hardware and software ecosystem has been created to support design bureaus and engineering organisations throughout the country.
This is very important. We have been fighting for this for several years.
We are also improving the legal basis for using up-to-date solutions in construction. I mean the software for building information modelling. They are called BIM or TIM technologies. Their application is mandatory for the projects involving state financing. Practically, they are already used for erecting every second building in Russia.
Gradually, both design companies and developers are adopting Russia-made software. More than 800 of our products have been registered in this area.
They offer possibilities adapted to our national standards and regulations. They allow to discover discrepancies between the utility networks, structures and architecture at early stages in the virtual environment as well as check the structures’ stability, make calculations and reduce the number of cases requiring costly alterations at the construction site.
And we will undoubtedly continue to encourage the introduction of such digital instruments to increase reliability and safety of the building projects and cut business expenses.
Russian process automation systems have also proven to be in high demand. More than half of all our companies already have experience in using them.
Corporations join efforts for creating such platforms. Severstal, together with its partners, is developing components for an open automated process control system.
You should remember that the relevant prototype of one of its main components, a programme controller, was presented at the last Digitalization of Industrial Russia conference. It allows for reading sensors’ data and streamline production operations. Its pilot operation was started as early as this year. The programmme has an open source code, which is very important. It will be available to producers free of charge. This is a unique example of cooperation. I want to wish this project every success.
Of course, we also have other cases when joint work produces very significant results. I mean the industrial centres of excellence. It is thanks to them that critically important software products have emerged, which previously had no domestic equivalents at all.
At the time of launching the industrial centres of excellence, we have identified over 5,000 processes requiring development of own software. Now their number has decreased by almost four times.
As a result, all critical managerial and production processes in geological exploration, ecology, electric energy, oil and gas and petrochemical industries, in subsoil use have been practically supplied with Russia-made software in full.
In aircraft-, engine- and ship-building, in light industry, transport, logistics, trade, finances, construction and housing and utilities sector this index has already exceeded 90 percent.
These are commendable results, friends! While similar progress is evident in other sectors, there remains much work to be accomplished.
These achievements have been facilitated by the execution of particularly significant projects, under which our foremost clients, in collaboration with developers, create and introduce novel products. In challenging times, the state provides essential subsidies and grants where necessary.
Of the initially selected 170 initiatives, I recall, more than two-thirds have been successfully completed. Their total investment now stands at approximately 84 billion roubles. Primarily, these are the resources of the corporations themselves, which have secured approximately seven roubles of their own funds for every rouble of budgetary allocation.
I wish to extend my gratitude to our business community for such a responsible approach.
This year, we anticipate the completion of an additional two dozen projects, half of which also benefit from state support. I am confident they will become new growth points for the economy and, consequently, will bolster the development of industrial sectors. We will continue this practice.
I would like to highlight separately that some Russian corporate solutions for industry are already surpassing foreign counterparts in various parameters (we strive to assess this objectively), particularly regarding configurational flexibility and responsiveness of technical support.
It is imperative to advance and create products that not only fulfil the needs of our enterprises but also consider established market trends, thus setting objectives for the production of items that could surpass global counterparts gradually, where feasible. For instance, in terms of adaptability, speed of implementation, and integration of additional capabilities.
Today, our cloud technologies are evolving rapidly. The business community’s perception of them has fundamentally shifted over recent years. Back in 2022, I recall, organisations were sceptical about transferring their systems beyond their own perimeters and data centres. Now, they increasingly adopt this approach.
The cloud services market has expanded more than fourfold over six years. Domestic companies have fully transitioned to such infrastructure developed within Russia.
Presently, leading providers guarantee the secure storage of sensitive data within the country and offer all necessary tools for its effective protection. These technologies are also in demand when high computing power is required.
Since the beginning of last year, the number of requests for cloud-based artificial intelligence services utilising graphics processing units has doubled. This is particularly in demand in retail trade, the financial sector, and industry, linked to the active development of neural networks, machine learning, and big data analytics.
Providers integrate AI-based functionality directly into their platforms. Today, we observed numerous such examples. Cloud resources are becoming more than just a place for storing and processing information; they are an environment, an ecosystem, offering the most modern solutions for conducting business.
I would like to dwell separately on the artificial intelligence market. In Russia, it is expanding at nearly twice the pace of the rest of the information technology sector. Over half of all enterprises are actively engaged in the implementation of such technologies. We witnessed this at practically every stand. Thus far, only a few have reached the stage of industrial deployment, which suggests even greater potential for growth.
The integration of AI-based components into platforms for computer-aided design and production process management is becoming standard practice.
Already today, computer vision modules, predictive analytics, and recommendation services based on machine learning are being utilised very actively in industry, enabling better forecasting of all processes: the system suggests optimal procurement, repair schedules, and logistics chains. It was demonstrated today – artificial intelligence has saved 26 percent by preventing over-committing to certain decisions. This is already a story of great efficiency, ultimately enhancing labour productivity and assisting in many other tasks.
In mining, for example, through the use of such solutions, dump trucks at major deposits are managed in real time, minimising downtime and optimising traffic routes.
In aircraft manufacturing, domestic software for engineering calculations facilitates the most complex strength calculations.
Quite recently, when we inquired about products for calculations, the product was not domestic. I will mention not only Logos, as we are all familiar with it. Numerous packages for internal calculations are emerging. It is crucial that we share them. This accelerates testing and reduces the number of tests by 20–30 percent.
In the chemical industry, recommendation systems based on machine learning have been implemented at all ammonia production facilities. This reduces natural gas consumption and increases output volumes.
In conclusion, I want to underscore that today cloud services and artificial intelligence are being adopted by many enterprises, proving their effectiveness. When we discuss the further development of the information technology sector and our industry as a whole, this must be taken into account. We must act proactively, not merely creating analogous products to meet the needs of organisations but also anticipating changes. We must strive to compete successfully in new, emerging, promising areas, thereby laying the foundation for long-term technological leadership. This is one of the national goals approved by the President.
Colleagues,
These were my opening remarks. I propose we discuss how the digital transformation of industry is progressing, what results have been achieved in your sectors, what has been accomplished, and what proposals are on the agenda today.
I propose we commence the discussion.
