IMPORT SUBSTITUTION AND CO-OPERATION WITH EQUIPMENT MANUFACTURERS

In order to reduce dependence on imported equipment and the use of foreign software, as well as to ensure timely implementation of measures under Rosseti’s Corporate Import Substitution Plan, Rosseti South put an import substitution action plan in placeOrder No. 704 dated 17 November 2023..

Goals of the import substitution plan:

To implement the Uniform Technical Policy of PJSC Rosseti
To implement the Innovative Development Programme of PJSC Rosseti
To ensure the technological safety of power grid facilities and improve the energy security of the Russian Federation
To promote the creation and development of domestic production of electrical equipment and components that meet modern standards and requirements in terms of quality, reliability and economic efficiency
To stimulate the development of sectoral innovation infrastructure, promote innovative development and modernisation of enterprises in the domestic electrical industry
To raise the level of localisation of production of electrical products in the Russian Federation

Objectives of the import substitution plan:

To determine the composition of measures to mitigate and minimise risks associated with the use of foreign products in production and technological processes
To improve corporate documents defining the rules of accreditation and pre-qualification of suppliers of goods (works, services) in order to ensure their admission to trade and procurement procedures
To create organisational mechanisms and tools for information and analytical support of import substitution processes at Rosseti South, including a system for monitoring and evaluating how effectively the measures are implemented

IMPORT SUBSTITUTION TARGETS

Import substitution targets are stipulated by the Energy Strategy of Russia until 2035, according to which the share of advanced technological equipment for the fuel and energy sector created or localised in the Russian Federation in the total amount of technological equipment specified in the list of technological equipment demanded by organisations of the fuel and energy complex, the creation (localisation) of production of which is necessary on the territory of the Russian Federation until 2035 should amount to at least 50–60% in 2024 and up to 70–80% by 2035.

Share of foreign equipment in the total volume of equipment purchases, %

	2017	2018	2019	2020	2021	2022	2023	2024	2025	2026	2027
Planned values of key indicators of the corporate import substitution plan	16	12	8	5	4.9	4.8	4.7	4.6	4.5	4.4	4.3
Actual values of key indicators of the corporate import substitution plan	11.24	4.52	7.16	4.47	1.56	2.53	1.34