Russia to Offer Billions in Subsidies for Companies Switching to Domestic Software
By 2030, at least 80 percent of Russian enterprises are expected to operate on locally developed software as the government ramps up digital sovereignty efforts.
Russia is reinstating subsidies to accelerate the transition of businesses to domestic software, according to Industry and Trade Minister Anton Alikhanov, who announced the initiative during a meeting with lawmakers in the State Duma. The move marks a renewed phase of the country’s large-scale program to replace foreign IT products with homegrown alternatives.
Billions for Digital Independence
Previous support programs proved highly popular, especially among small and medium-sized businesses that received up to a 50 percent discount on domestic software installation, with funds transferred directly to developers. Large enterprises were eligible for grants ranging from 20 to 500 million rubles (approximately $247.357 to $6.2 million), while targeted programs by the Ministry of Digital Development offered up to 6 million rubles (about $65,000) to boost the IT industry’s growth.
Under the draft federal budget for 2025–2027, nearly 1 trillion rubles (around $11 billion) will be allocated to digital technologies. Alikhanov emphasized that the government aims to create additional financial incentives for companies migrating to Russian software and to fund the development of complex industrial solutions such as Product Lifecycle Management (PLM) systems.
The new budget proposal earmarks 18 billion rubles (roughly $200 million) for improving and deploying Russian digital products — a clear signal that software import substitution remains one of the cornerstones of the nation’s technological strategy.
By linking financial support to innovation, Russia hopes to strengthen its domestic software ecosystem, reduce reliance on foreign vendors, and position local developers as leaders in the global tech race.
