2025: A Breakthrough Year for Russian Industrial Software
Import substitution as a growth strategy – Russian industry moves toward digital independence.
Growth Despite Headwinds
On December 12, 2025, the RBC forum “The New Economy: From Results to Strategies” hosted an Industry session where experts discussed the key challenges facing the real sector of the economy in the context of 2025 macroeconomic trends and strategic prospects for the next five years.
Particular attention was paid to the process of import substitution – its current scale, realistic timelines, and the feasibility of achieving technological independence in critically important segments.
Despite persistent difficulties, Russian industry continues to demonstrate steady growth. According to Rosstat, industrial production in October 2025 increased by 3.1% year-on-year, driven primarily by the defense sector, mining, and oil refining. High-tech manufacturing is developing especially rapidly, even as it faces technological barriers and financial constraints.
Russian IT Companies Move Onto the Factory Floor
The IT sector has become a key driver of industrial transformation, actively working to meet the needs of manufacturing. Amid large-scale import substitution that began after 2022, Russian IT companies received a powerful boost. For example, the Ultimatik Group, which specializes exclusively in Russian industrial solutions, forecasts revenue growth of 30–35% in 2025 and has set an ambitious target of doubling revenue in 2026.
Experts identified two main drivers of import substitution: security and innovation.
The rejection of foreign software, particularly ERP systems, was often driven by the inability to receive security updates. This is especially critical given that industrial enterprises account for 26% of all cyberattacks in the country. Previously, in segments such as industrial process control systems for metallurgy, import substitution was considered almost impossible. According to a joint study by Ultimatik Group, Positive Technologies, and Aquarius, 71% of companies at the beginning of 2025 had no plans for import substitution, and 40% were not planning any changes at all.
However, the situation changed dramatically by the end of the year, in part due to government regulation, specifically the adoption of Federal Law No. 58-FZ, which mandated the use of Russian software at critical information infrastructure facilities.
One Percent of IT Spending – Billions in Savings
Import substitution is already delivering tangible economic benefits. Although IT spending accounts for only about 1% of total industrial operating costs, even this small share can generate substantial savings. A clear example is Ultimatik Group’s project with Norilsk Nickel, where the Databriz digital maintenance management system reduced furnace downtime by eight days and increased repair efficiency by 13%. Given that downtime costs exceed 100 million rubles per day (approximately $1.2 million), the economic impact is clear.
Import Substitution as a Growth Strategy
Today, a new ecosystem of collaboration between industrial companies and IT developers is taking shape in Russia. Successful partnership-based projects are becoming the foundation for competitive solutions. Ultimatik, for example, is working with NOVATEK, SIBUR, Gazprom Neft, and EuroChem to develop advanced control systems and process modeling solutions for chemical and oil refining operations.
Large-scale projects are also underway in the CAD sector. A consortium that includes Top Systems, ASCON, Nanosoft, AvtoVAZ, UEC, and other companies has invested more than 15 billion rubles (approximately $180 million) in the development of Russian design systems that, in many respects, outperform their Western counterparts.
The year 2025 became a turning point. Import substitution is no longer a forced measure but a strategic advantage, forming the foundation for sustainable growth and technological sovereignty in Russian industry for years to come.
Over the next five years, import substitution and digitalization are expected to become the primary drivers of industrial development in Russia. Active adoption of Russian CAD systems, industrial IoT platforms, and machine vision solutions is anticipated to increase production efficiency and autonomy. Government support and the growing expertise of Russian IT companies will accelerate the transition to domestic industrial software, ensuring technological sovereignty and resilience to external challenges.
