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Supporting the IT Industry in Russia: 5 Key Initiatives

Original in Russian: blog.skillbox.by
Supporting the IT Industry in Russia: 5 Key Initiatives

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Support for Domestic Software: New Preferences

The roadmap for the development of the IT industry in Russia provides for new support measures for domestic software producers. Expert Mikhail Stetsenko, an associate partner at Skillbox Media, emphasized that these initiatives will bring significant benefits to both government agencies and private companies. Industry associations, the Federal State Institution "Gostech," and the Russian Export Center will be able to take advantage of the proposed measures, which will strengthen the market position of Russian developers and improve software quality. These changes will create new opportunities for innovation and increased competitiveness in the IT sector.

The roadmap emphasizes support for developers of domestic processors, including the Elbrus and Baikal-M. These measures are aimed at assisting manufacturers of hardware and software systems (HSS) and strengthening the market position of Russian high technology. The establishment of preferences for these processors contributes to the development of innovative solutions and increased competitiveness in the field of high technology, which is a key aspect for ensuring the technological independence of the country.

Boards with the Elbrus processor. Photo: Rostec Holding website

The document presents the main support measures, highlighting key initiatives aimed at assisting various categories of individuals and organizations. These measures include financial assistance, tax incentives, training and retraining programs, and support for entrepreneurship. The implementation of these initiatives will improve the economic situation of the population and create favorable conditions for business development.

  • Granting preferences to Russian software and hardware systems when used in critical information infrastructure (draft decree of the President of the Russian Federation and government resolution of September 2021).
  • Prohibition of the purchase of foreign software and hardware systems for certain categories of legal entities in the presence of Russian analogues (federal law is planned for December 2021).
  • Inclusion of expenses for the implementation of Russian software and hardware systems in the investment tax deduction for income tax (federal law - by November 2021).
  • Amendment of the Tax Code to account for expenses on the purchase and implementation of domestic AI solutions with an increasing coefficient of 1.5 (federal law - by November 2021).
  • Creation of centers for testing the compatibility of Russian software with domestic electronic products and telecommunications equipment (federal law - by March 2022).

Despite these positive initiatives, experts are raising concerns. Lawyer Alexey Zaytsev noted that the new rules fail to address significant issues related to unfair practices in the use of open-source software. Some companies make minimal modifications to such programs and present them as domestic solutions for public procurement, raising doubts about the true value of the final product. It is important to emphasize the need for quality control and transparency of such software to protect the interests of users and the state.

Ensuring a balance between supporting domestic developers and quality control of the solutions offered is crucial. This is necessary to prevent abuses and improve the competitiveness of Russian software on the international stage. Supporting local developers promotes innovation and technological development, while strict quality control ensures that products meet high standards and user requirements. Thus, an effective combination of these two aspects will lead to more successful promotion of Russian software in the global market.

Taxation of Foreign Companies: A New Stage in the Digital Economy

Expert Mikhail Stetsenko reports on the preparation of innovations in Russian tax policy concerning foreign IT companies. The proposed digital tax plans to introduce additional tax obligations for foreign organizations using Russian citizens' data for targeted advertising. These measures are aimed at protecting national interests and regulating the digital space in which foreign players operate. The introduction of such tax obligations could have a significant impact on the business models of foreign companies and accelerate their adaptation to new operating conditions in the Russian market.

A report substantiating the need for these measures will be presented in the coming months. This underscores the importance of this issue in the context of the rapidly developing digital economy.

Stetsenko emphasized that Russian authorities are interested in collaborating with foreign IT companies, offering them the opportunity to obtain digital residency. This proposal has become relevant in light of the recently adopted law requiring owners of foreign internet resources with more than 500,000 daily visits from Russia to open representative offices in the country. The creation of such representations will allow companies not only to legalize their activities, but also to gain access to new markets and opportunities in Russia.

Photo: Pierre-Olivier / Shutterstock

The expert notes that the Russian authorities insist on Mandatory compliance with local legislation by foreign companies. If an operating company makes a profit in the Russian market, it must pay taxes and adhere to local regulations. This is relevant and necessary, even given the cross-border nature of the IT business, Stetsenko emphasizes. Compliance with the law contributes to the creation of a fair competitive environment and strengthens economic relations between countries.

The introduction of a digital tax could have a significant impact on the business environment. This emphasizes the need to comply with local laws and regulations, which in turn contributes to a more competitive environment for domestic companies. The introduction of a digital tax could also lead to improved tax transparency and fairness, which positively impacts the overall business climate. Companies must adapt to the new requirements to avoid fines and maintain their competitiveness in the market.

The amount of the new tax is expected to be determined through government discussions. This change may increase the costs of doing business for foreign companies in Russia, but will also open up new opportunities for localization and adaptation of their operations to local conditions. The exact timing of the law's entry into force has not yet been determined, but it is expected that the new measures will be implemented in the coming months.

The Role of the IT Ombudsman in Protecting the Rights of Companies and the Creation of Digital Attachés

According to the latest initiatives of Russian legislators, the country plans to create an IT Ombudsman institution, which will be aimed at protecting the rights of companies in the digital sphere. The new institution is obliged not only to identify systemic problems, but also to actively respond to complaints and appeals from businesses. The Minister of Digital Development, Communications and Mass Media of the Russian Federation, Maksut Shadayev, noted that the launch of the IT Ombudsman institution is planned for the end of 2021, and the relevant regulations should be prepared by December 2021. This step is aimed at improving the business climate in the field of information technology and increasing trust in digital services, which in turn can contribute to the development of innovation and attract investment in the Russian IT sector.

Not all experts share the optimistic view of this initiative. Mikhail Korneev, host of the YouTube channel "Sly Python," expresses doubts, arguing that the new institute will not have the necessary powers to significantly influence the development of the IT sector. His opinion emphasizes the importance of having real tools and resources to effectively influence the industry, which raises questions about the feasibility of creating such structures. With rapid changes in technology and business processes, it is necessary to ensure adequate management and support for IT companies, and, according to Korneev, the created institute may not be up to the task.

In Russia, alongside the IT ombudsman, a digital attaché service is being created to facilitate the foreign economic activity of domestic companies. The corresponding resolution is expected to be prepared by December 2021. Lawyer and export expert Alexey Zaitsev emphasizes that the issue of export support has been discussed in the country for a long time. Various export centers, such as the Russian Export Center, currently operate to assist manufacturers in entering international markets. These measures are aimed at developing foreign economic activity and supporting Russian companies in the global economy.

Mikhail Korneev emphasizes that IT companies entering international markets are associated with various challenges that must be taken into account. Companies face legal and cultural barriers, legislative differences, and the need to adapt their products and services to the requirements of international clients. Furthermore, it is important to consider competition from local players, who may have a deeper understanding of the market. To successfully enter foreign markets, IT companies should thoroughly research their target audience, develop strategic partnerships, and ensure high-quality service.

  • Successfully entering another country's market requires a deep understanding of its specifics and local contacts, which is why companies often prefer to hire local specialists.
  • Western markets often distrust Russian IT companies.
  • Companies are forced to adapt to the requirements and expectations of local markets.

Despite the introduction of the digital attaché service, Korneev believes that these measures will not solve current problems and will not have a significant impact on supporting Russian companies abroad. Existing challenges require a more comprehensive approach and effective strategies for successfully promoting business in the international arena.

Support for digital education: new horizons

Modern challenges in education require the integration of traditional teaching methods with innovative EdTech projects. Lawmakers are committed to improving the education sector by implementing strategic initiatives that promote the development of technology in education. This will create more effective and accessible educational solutions that meet the needs of modern society. The integration of new technologies into the educational process helps improve the quality of education and prepare students for the challenges of the future.

  • Provide educational institutions with access to modern educational services (according to the government decree of September 2021);
  • Develop a training program for teachers, focusing on distance and blended learning methods (deadline - December 2021);
  • Organize additional training for students in IT profiles at 100 higher education institutions (government decree - February 2022).
Photo: Bauman Moscow State Technical University website

Valentin Dombrovsky, CEO of Skillbox Media and co-founder of Geekfactor.io, emphasizes the importance of integrating traditional education with digital services. He notes that the use of digital technologies helps increase student engagement and allows for effective monitoring of the learning process. Thus, the combination of classical teaching methods with modern digital tools opens up new horizons for the educational process, making it more interactive and effective.

The documents also discuss additional measures to improve the educational process. These measures are aimed at optimizing the learning environment, enhancing the quality of teaching, and actively engaging students in the learning process. Improving the educational process includes the introduction of innovative technologies, the development of professional training programs, and the creation of conditions for an individualized approach to learning. Such initiatives can significantly improve the efficiency of educational institutions and facilitate deeper learning by students.

  • Transfer government agencies and budgetary organizations to the use of state messengers (standards are scheduled to be developed in November 2021);
  • Provide Russian teachers and medical workers with tablets running a domestic operating system (in accordance with a government decree from October 2021);
  • Gradually replace foreign office software with domestic solutions, ensuring the compatibility of information systems (methodological recommendations are expected in December 2021).

Anastasia Gracheva, a lawyer and lecturer at St. Petersburg State University, emphasizes that the digitalization of education requires greater attention. She notes that the pandemic has served as a catalyst for change in this area, but the proposed measures raise certain doubts. It is important to closely monitor the development and implementation of digital technologies in education to ensure high-quality learning and the adaptation of educational processes to new conditions.

Gracheva notes that in 2020, the problems of computer and internet connection shortages were actively discussed. However, current measures focus exclusively on personnel decisions, while not taking into account the necessary changes in the educational process for effective remote or blended learning. This highlights the need for a comprehensive approach to reforming the educational environment in the face of modern challenges.

A modern curriculum must take into account the digital reality, regardless of the chosen specialty, be it law, geology, mathematics, or history. It is important that educational programs integrate digital skills and technologies, providing students with the necessary tools for successful professional work. However, existing documents focus predominantly on "digital" disciplines, which limits the development of an integrated approach to education. It is necessary to expand horizons and introduce digitalization into traditional fields of knowledge to prepare students for the challenges of the modern world.

Gracheva emphasizes that areas such as Digital Humanities, Social Data Science, and LegalTech, which integrate technical and humanities sciences, continue to remain without adequate support. This lack of attention to these areas can negatively impact the development of interdisciplinary research and innovative solutions that can significantly improve the understanding of social processes and legal systems in modern society.

The Internet of Things, Artificial Intelligence, and Open Source Software: Trends and Challenges

In today's digital world, Internet of Things (IoT), artificial intelligence (AI), and open source software technologies play a vital role in driving innovation. These technologies contribute to the creation of smart systems that optimize processes and increase efficiency in various fields.

The Internet of Things allows devices to be connected to the network, which makes it possible to collect and analyze data in real time. Artificial intelligence, in turn, processes this data, identifying patterns and proposing solutions. Open source software facilitates the rapid development and implementation of new solutions by providing access to resources and tools for developers.

Current initiatives in the field of IoT and AI include the creation of smart cities, automation of industrial processes, and the development of technologies to improve the quality of life. These areas open new horizons for business and society, allowing for the creation of more sustainable and efficient systems.

  • The creation of a state data repository, planned for completion by the end of 2023. This will allow developers to have access to up-to-date and high-quality data.
  • The introduction of mandatory use of domestic IoT solutions in the areas of housing and communal services and fire safety, which should be enshrined in a new federal law by the end of 2023.
  • Development of state information systems based on domestic IoT technologies for monitoring climatic conditions and the environmental situation, as well as for monitoring the consumption of utilities by budgetary institutions. The preparation of the relevant regulations is also planned for the end of 2023.

Experts believe that the proposed measures can significantly stimulate the development of the IT industry. However, it is necessary to pay attention to the potential risks associated with corruption and market monopolization. Sustainable growth of the sector requires careful control and transparency to avoid negative consequences and ensure fair competition.

Anastasia Gracheva, a lawyer at Legit and a lecturer at St. Petersburg State University, emphasizes the importance of creating state data repositories for the development of the IT sector. She notes that modern developers need access to large volumes of information, which can significantly accelerate innovation processes and improve the quality of development. The implementation of such repositories will not only facilitate the acquisition of the necessary data but also create opportunities for new solutions and the improvement of existing technologies.

According to the expert, the issue of business access to data remains a key aspect. It is necessary to clearly establish the access procedure, conditions, and selection criteria in order to minimize the risks of corruption and prevent the formation of monopolies. We will closely monitor the development of new regulations in this area. This will ensure transparency and fairness in the process of access to information, which is essential for a healthy competitive environment.

Criminal Liability Reform for IT Specialists

In recent years, Russia has seen the active development of legislative initiatives aimed at creating a more favorable environment for IT market participants. One of the key proposals is exemption from criminal liability subject to the payment of a fine and compensation for damages. This measure can significantly reduce the risks for entrepreneurs working in high technology, thereby contributing to the growth of the innovative sector. The implementation of such initiatives will help attract more investment in the IT industry and stimulate the development of new technologies in the country.

It is planned to introduce the practice of involving jurors in cases involving IT entrepreneurship. This step can significantly improve the level of fairness in legal proceedings; however, many questions remain regarding the practical application of these rules. A detailed study of the criteria for selecting jurors, as well as their role in the decision-making process, is necessary. It is also important to consider the specifics of the IT industry, which requires additional clarification and adaptation of legislation. The implementation of this practice could be an important step towards a more transparent and fair judicial system in the field of technology and entrepreneurship.

Lawyer Alexey Zaytsev of Skillbox Media notes that current legislation provides for restrictions on the arrest of entrepreneurs accused of economic crimes. However, this provision is often not implemented in practice, indicating the need for reform and the development of clearer instructions for law enforcement. This underscores the importance of ensuring legal protection for businessmen and creating an environment conducive to the development of entrepreneurship.

The expert emphasizes that the roadmap does not specify which specific crimes will be covered by the new rules, which raises significant doubts. "Why does this initiative apply exclusively to IT entrepreneurs? How will we determine who exactly falls under this definition?" Zaytsev asks. It is important to note that clear criteria and transparency in defining categories of market participants are necessary for the successful implementation of the initiative and the protection of the rights of all stakeholders.

Russian criminal legislation lacks a clear category of IT crimes. Despite the existence of certain offenses related to computer information, they cannot be directly classified as economic crimes. The team at the Legit law firm supports this opinion, emphasizing the need for further development of the legal framework in the field of information technology. With the rapid growth of digital technologies, it is important to take into account changes in legislation to effectively combat cybercrime.

Most likely, these are economic crimes, such as fraud, committed by IT market participants. It is important to note that the possibility of involving jurors in economic cases has been discussed previously. This underscores the need to update legislation in this area, which could contribute to a fairer and more effective judicial process. Given the rapid development of technology and the growing number of economic crimes in the IT sector, updating the legal framework is becoming especially urgent for protecting the interests of society and business.

Discussion of these initiatives may continue until February 2022, when the government plans to review the relevant report. This period could be key for determining future regulatory norms concerning IT businesses in Russia. It is important to closely monitor the situation, as decisions made could significantly impact the country's technology and innovation market.

IT industry specialists are asking important questions related not only to the legal framework but also to the practical implementation of new regulations. How will jury trials be organized in technology-related cases? What measures will be implemented to protect the rights of entrepreneurs in a rapidly changing legal environment? These and other issues require detailed clarification and discussion to ensure stability and transparency in the digital sector.

Digitalization of Medicine: A New Stage in Healthcare Development

As part of the state digitalization program, the Russian healthcare system is preparing to implement a variety of innovative solutions. These measures are aimed at simplifying access to medical services and improving the quality of patient care. Digitalization is expected to optimize the process of making appointments with doctors, increase the efficiency of medical institutions, and make medical care more accessible to the population. The introduction of new technologies will facilitate improved communication between patients and medical staff, which in turn will have a positive impact on the overall level of healthcare in the country.

With the transition to electronic prescriptions, scheduled for 2023, the healthcare system will become more efficient and convenient for patients. This step will eliminate the need to wait in lines for printed documents, significantly speeding up the process of obtaining medical services. The initiative, announced back in 2016, is intended to improve access to prescriptions and facilitate interactions between patients and doctors. However, in some regions, implementation of this system has yet to begin, highlighting the need for accelerated efforts in this area to improve the quality of healthcare.

According to Daria Bazhenova, an analyst at Microneedle Industrial LLC, the use of electronic prescriptions helps reduce the workload of general practitioners and expedites the process of receiving medical services for patients. The introduction of electronic prescriptions can significantly increase the efficiency of medical institutions and improve the quality of care. It will also create a more convenient environment for patients, allowing them to more quickly receive the necessary medications and treatment.

Starting in November 2021, remote prescription drug sales will begin. This step represents a significant advancement in telemedicine and will significantly simplify access to medications. This will be especially beneficial for the elderly, who are facing difficulties under quarantine and restrictions. The introduction of remote services will allow patients to receive necessary medications without leaving home, increasing comfort and safety.

September 2021 marked a significant milestone in the development of telemedicine services, which are now actively used for diagnosis and treatment. According to expert Bazhenova, remote monitoring of patients' health is only possible during rehabilitation or follow-up appointments, provided up-to-date laboratory results are available. This underscores the importance of integrating modern technologies into medical practice to improve the quality of care and increase accessibility.

The expert emphasizes that disease diagnosis should not be based solely on the patient's subjective complaints. A thorough objective examination is essential to ensure accurate diagnosis and prescribe effective treatment. Objective data is key to understanding a patient's health and identifying potential illnesses.

Starting in December 2021, access to personal medical data is planned through electronic services. This innovation raises concerns regarding privacy and data protection, as noted by expert Bazhenova. Ensuring the security of medical information is critical, as a data breach can have serious consequences for patients. Robust security and access control mechanisms are essential to ensure that personal medical data remains secure.

The collection of anonymized data represents an important step in the development of artificial intelligence in medicine and can significantly facilitate the advancement of telemedicine in Russia. However, current legislative restrictions on data export create significant barriers to the creation of high-quality and effective AI systems. These restrictions can slow the implementation of innovative solutions in medical practice, negatively impacting the availability and quality of medical services for the population. It is important to find a balance between the protection of personal data and technological development to ensure the effective use of data to improve healthcare.

Despite existing challenges, the implementation of artificial intelligence in medical practice has the potential to significantly improve the quality of medical services. Algorithms developed to select treatments for patients with comorbid conditions can become a valuable tool for young specialists. These AI solutions can analyze massive amounts of data and offer personalized treatment approaches, leading to more effective patient care. This not only optimizes the decision-making process but also improves treatment outcomes, making AI an important component of modern healthcare.

Photo: Pimen / Shutterstock

The role of computer games and video content in Russian

Computer games and video content play a significant role in Russia's cultural life. In anticipation of 2022, the Russian government is considering measures to support domestic audiovisual content producers. One initiative is the creation of a fund to support gaming projects, which will help popularize Russian culture and history among a wider audience. Supporting domestic developers not only promotes the development of the gaming industry but also strengthens cultural ties, drawing attention to the unique aspects of Russian tradition and modernity.

Implementation of the planned measures will begin in November-December 2021, opening up new prospects for the development of the country's creative economy. These initiatives are aimed at supporting creative industries and stimulating innovation in various fields. As a result, an increase in the number of startups and an improved environment for creative professionals are expected, which in turn will contribute to economic development and increased competitiveness.

By February 2022, it is planned to exclude expenses on advertising on foreign internet platforms from the taxable base. This innovation is aimed at encouraging Russian companies to place advertisements on domestic resources, which will contribute to increasing their market share. Reducing the tax burden on investments in advertising in the Russian market will create more favorable conditions for local entrepreneurs and help develop national business. Thus, changes in tax legislation will help support the economy and strengthen the position of Russian companies in the face of global competition.

Experts warn that the new measures could negatively affect the export of Russian software to international markets. Anastasia Gracheva, a lawyer and lecturer at St. Petersburg State University, emphasizes that these actions are aimed not so much at supporting the IT industry, but at transferring users from foreign platforms. The question arises as to how such restrictions can facilitate the promotion of Russian software abroad.

The proposed measures could be an important step in the development of the Russian gaming industry. However, it is necessary to carefully analyze the potential risks associated with entering foreign markets. Successful expansion requires consideration of cultural characteristics, the competitive environment, and legislative regulations in other countries. The correct approach to international product adaptation can significantly increase the chances of successful promotion and recognition outside of Russia.

Cybersecurity: The Future of Information Protection

Modern cyberthreat challenges require organizations to employ innovative solutions to protect information. The Russian cybersecurity roadmap provides for the creation of three specialized segments of the cyber training ground. These platforms will serve as training and advanced training for specialists, managers, and experts in the field of information security, which will improve the level of data protection and reduce the risk of cyberattacks. Training at such sites will be an important step in developing qualified personnel capable of effectively countering current threats in the digital space.

Cyber ​​ranges are digital models of the IT infrastructures of key sectors of the Russian economy, which allow for the simulation of various cyberattack scenarios and the evaluation of the effectiveness of data protection measures. These platforms play a key role in the national "Digital Economy" program, which aims to improve information security in the country. Using a cyber range not only helps identify system vulnerabilities but also develop defense strategies, which is especially relevant in the face of growing cyber threats. Investments in such technologies help ensure the reliability and resilience of critical infrastructures, which is an important step in protecting Russia's national interests in the digital space.

Alexey Zaytsev, lawyer and expert at Legit, notes that the creation of the cyber range will significantly improve the training of cybersecurity specialists. The project is expected to be completed in December 2023, underscoring the importance and necessity of this area for ensuring digital security. Implementing a cyber range will be a key step in training qualified personnel capable of effectively addressing the challenges posed by cyber threats.

Why is a cyber range important for business?

Creating a cyber range allows companies to effectively prepare for potential cyber threats and minimize the risk of data leaks. With the constant increase in cyberattacks, training employees on such platforms is becoming critical for any organization. Cyber ​​ranges provide realistic attack scenarios, which helps develop incident response skills and strengthen the security of information systems. Investing in such solutions not only improves a company's security posture but also fosters a culture of cybersecurity among employees, ultimately protecting valuable data and reducing financial risks.

Frequently Asked Questions about Cyber ​​Ranges

Cyber ​​ranges are specialized platforms designed to simulate real-world cyberattack scenarios for the purpose of training cybersecurity specialists. The primary objective of these platforms is to enhance information system protection skills and train qualified personnel. The first segments of the cyber range are scheduled to launch in late 2023, significantly improving the training of information security specialists.

Analysis of Roadmap Issues: A Critical Look at the Legislative Process

The new roadmap for supporting the IT industry in Russia identifies a number of systemic issues that require in-depth analysis and justification. Skillbox Media experts emphasize that even after amendments to the legislation are introduced, a detailed feasibility study and analysis of the regulatory impact on the market must be conducted. This will create more effective conditions for the development of the IT sector in the country and eliminate existing obstacles.

Legal expert Mikhail Stetsenko expressed the opinion that the explanatory note to the bill will include only general phrases, such as: "Additional funding is not required, certain changes are being made to regulatory legal acts." This raises serious concerns, since it is unclear what specific problems this law solves and what goals it pursues. The lack of a detailed analysis may lead to an insufficient understanding of the consequences of the changes made and their impact on law enforcement practice.

Alexey Zaitsev, a lawyer and external expert, emphasized that of the 62 proposed measures, only a small number are aimed at systemic changes. This raises doubts about the real effectiveness of these initiatives.

The lack of specific details and comments in the document is causing discontent among specialists. Zaitsev asks the question: "How exactly will these measures contribute to the development of the industry?" This may lead to the proposed measures being unfounded and ineffective in achieving the stated goals. Understanding and clearly justifying the proposed solutions are key factors for the successful development and implementation of changes in the industry.

Anastasia Gracheva noted that the presented document looks more like a set of disparate ideas than a structured action plan. "The roadmap lacks a unified concept and convincing arguments for the implementation of the proposed measures. It is also unclear to what extent support is needed and what the sequential stages of implementation are," she emphasizes.

Mikhail Stetsenko expressed doubts about some of the proposed measures. He noted that some of them are clearly formulated, while others appear to be abstract ideas about "preparing amendments to legislation." This may not only hinder the industry's development but also lead to negative consequences. It is important that measures be specific and aimed at genuinely improving the situation in the industry.

Support and regulation of the IT industry in Russia: key aspects for successful development.

The importance of IT support and regulation in Russia cannot be overstated. Effective government policy aimed at developing information technology fosters an innovative environment that attracts investment and stimulates startup growth. Comprehensive government support includes tax incentives, subsidies, and the creation of a favorable infrastructure for business.

Furthermore, it is important to consider legislative initiatives that may impact the development of the IT industry. Regulation aimed at protecting user data and ensuring cybersecurity is becoming increasingly relevant in the context of growing digitalization. Developing clear rules and standards in this area will help ensure stability and predictability for technology companies.

Therefore, understanding the mechanisms of IT support and regulation in Russia is a prerequisite for successful business development in this dynamic and competitive environment.

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