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Import Substitution

Practical answers on import substitution in IT: migration from foreign software to Russian equivalents (Open Source, forks), choosing alternative software and OS, meeting government regulation requirements.

Import Substitution

66 questions

What is software import substitution?

Software import substitution is a strategic process of transition of government structures and business from foreign software products to domestic analogues. The goal is to ensure technological sovereignty, protect critical infrastructure from sanctions and prevent data leaks. The transition is strictly regulated by the government and is mandatory for state companies and CII facilities. Our products Sintezm and SKIF-BP are included in the Register of Domestic Software.

Who is required to use Russian software?

All state and significant corporate structures, including owners of critical information infrastructure (CII) facilities, are required to transfer their systems to Russian software. For state customers, the use of domestic software from the Register is a mandatory requirement for procurement under 44-FZ and 223-FZ. Our products Sintezm and SKIF-BP comply with these requirements.

What are 3 examples of import substitution?

Examples of import substitution: the financial sphere — the creation of the Mir national payment card system; information technology — the development of domestic operating systems (Astra Linux) and office suites (MyOffice); agriculture — the construction of agro-industrial complexes to ensure food independence. In the software sphere, our products Sintezm and SKIF-BP are examples of successful import substitution.

What does inclusion in the Russian software register give?

Inclusion in the Russian Software Register gives tax benefits (VAT exemption on sales), advantages in public procurement (priority in purchases for state needs), access to grants and preferential lending, and also increases trust in the product. Our products Sintezm and SKIF-BP are included in the Register. The research service will help you choose suitable solutions.

Why switch to domestic software?

The transition to domestic software ensures technological sovereignty, protection from sanctions risks, data security and compliance with legislative requirements. Only software included in the Register is allowed to participate in tenders under 44-FZ and 223-FZ. Our products Sintezm and SKIF-BP are ready-made solutions for import substitution. The training service will help employees master new systems.

What is the plan for the transition to domestic software?

The transition plan includes an inventory of the foreign software used, selection of analogues from the Register of Russian Software, pilot testing, data migration and employee training. The transition deadlines are set by regulators — for CII facilities until January 1, 2028. Our products Sintezm and SKIF-BP are ready for implementation. The design service will help develop a roadmap.

What are the disadvantages of import substitution?

The disadvantages of import substitution may include rising prices due to reduced competition, the need to improve product quality to meet standards, and increased production costs due to the cost of creating new products. However, for critical information infrastructure, import substitution is an unavoidable necessity. Our products Sintezm and SKIF-BP offer competitive solutions.

What is the Register of Domestic Software?

The Register of Domestic Software is an official list of software products of Russian origin, maintained by the Ministry of Digital Development, Communications and Mass Media of the Russian Federation. It is used for public procurement and import substitution: state customers give priority to products included in the Register. A key criterion for inclusion is that the rights holder is a Russian legal entity controlled by residents of the Russian Federation, with a foreign participation share of no more than 50%. Our products SINTEZ-M and SKIF-BP are included in the Register.

How does the Register of Domestic Software work?

The Register works as a single public database of domestic software products. The Ministry of Digital Development considers applications from rights holders and, if a product meets the criteria, assigns it a registration number and determines its class. Buyers use the Register to select software for public procurement, while vendors receive tax preferences and access to the state market.

Where is the Register of Domestic Software applied?

The Register is applied in state and municipal procurement: customers working under 44-FZ and 223-FZ must give priority to software from the Register. It is also used in import substitution programs for critical information infrastructure (CII), when selecting analogues of foreign products, and for granting tax preferences and grants to rights holders.

What advantages does the Register of Domestic Software provide?

Inclusion in the Register confirms the domestic origin of the software and gives the right to participate in state and municipal procurement: customers under 44-FZ and 223-FZ must give priority to products from the Register. Rights holders also receive tax benefits (VAT exemption on sales), access to grants and preferential lending, and increased customer trust. Our products SINTEZ-M and SKIF-BP are included in the Register.

What are the requirements for including software in the Register of Domestic Software?

To be included in the Register, a product must be of Russian origin: the rights holder is a Russian legal entity controlled by residents of the Russian Federation. The software must not contain significant borrowings from foreign products, and Russian cryptographic algorithms must be used where required. The rights holder must also demonstrate economic viability — revenue from sales, a development staff and development plans.

How can I check whether software is included in the Register of Domestic Software?

The Register is publicly available and can be searched by product name, rights holder or product class. Each entry contains the registration number, the software class and information about the rights holder. Checking the Register is important when selecting software for state procurement, since only products from the Register can participate.

What products from the Register of Domestic Software does Fintech offer?

Several Fintech products are included in the Register of Domestic Software: the SINTEZ-M platform (low-code development, class 04.06 — software development tools); the SKIF-BP system (budget process, class 02.09 — financial management systems); and the Biomark platform (biometric identification, class 05.14 — information protection tools). Their presence in the Register confirms their domestic origin and allows their use in state and municipal procurement.

What is the budget rule in simple words?

The budget rule is a financial safety cushion for the country. At high oil prices the state saves part of the income in the National Wealth Fund; at low prices it uses the savings to fulfill obligations.

How does the budget rule affect the ruble exchange rate?

It smooths fluctuations: the Ministry of Finance buys currency at high oil prices (strengthening the ruble) and sells at low prices (restraining the fall).

How is the budget rule related to subsidizing?

The rule determines the volume of funds for subsidizing. The higher the cutoff price and savings, the more opportunities for support programs.

What is the cutoff price in the budget rule?

It is the base oil price set in the budget (e.g. $59 per barrel of Urals). Above it — windfall revenues go to reserves; below it — the deficit is covered from reserves.

Will the budget rule be abolished?

No, but its parameters are periodically revised. A transition to a structural balance rule is being discussed for 2023-2026.

How is the Stabilization Fund different from the National Wealth Fund?

The Stabilization Fund was created in 2004. In 2008 it was split into the Reserve Fund and the National Wealth Fund. Since 2018 all funds are consolidated in the NWF.

How does the budget rule affect inflation?

Indirectly through the money supply and the ruble exchange rate. Currency purchases at high oil prices strengthen the ruble and restrain inflation.

How is a subsidy different from a grant?

A subsidy is targeted assistance requiring a report on targeted use. A grant covers losses and can be spent on current needs without strict reporting.

Who can get a housing and utility subsidy?

Citizens whose utility costs exceed the established share of income (usually 22%), including low-income families, pensioners and large families.

How does a business get a subsidy?

Register an IP or LLC, prepare a business plan and submit an application to the My Business center. Reporting via electronic document flow.

Does a subsidy have to be repaid?

No, if all program conditions are met and targeted use is confirmed. Otherwise the subsidy must be returned to the budget.

Where does money for subsidizing come from?

From federal, regional and local budgets, including funds accumulated under the budget rule (National Wealth Fund).

What documents are needed for a subsidy?

Depending on the type: passport, income certificate, business plan, cost estimate. The full list is specified in the relevant department.

How long does it take to review a subsidy application?

Usually from 10 to 30 days. In some cases it may increase to 60 days.

How is Open Source different from proprietary software?

Open Source code is open for study and modification. Proprietary software code is closed and requires purchasing a license.

Is Open Source safe to use?

Yes, the code is open and reviewed by a global community. For CII facilities, FSTEC-certified solutions are recommended.

Can Open Source be used in government systems?

Yes, including Astra Linux and Postgres Pro, which are in the Register of Russian Software.

What Open Source licenses exist?

GPL, MIT, Apache. The choice affects use in commercial products and government systems.

How does Open Source help import substitution?

It allows creating domestic solutions on the basis of proven open code, reducing dependence on foreign vendors.

Which Russian Open Source projects exist?

Astra Linux, Postgres Pro, RED OS, Alt OS, LibreOffice, Angie.

What risks are associated with Open Source?

Independent support needed, compatibility issues, no vendor guarantees. Regular audit is recommended. See also software fork.

What is a fork in programming?

A fork is the creation of a copy of a project's source code for independent development, like a branch off the main road.

How is a fork different from a clone?

Fork is a copy on the platform linked to the original for Pull Requests. Clone is a local copy on your computer.

Why are software forks created?

To add functionality, fix errors, adapt to specific tasks, or in case of disagreements with the original project's development.

Which known forks exist in Russia?

Angie (Nginx fork), Postgres Pro (PostgreSQL fork), RED OS. These are included in the Register of Russian Software.

What risks are associated with using forks?

Independent code support, compatibility problems, duplicated effort. Risks are minimized by inclusion in the register and certification.

How do you create a fork on GitHub?

Open the repository page, press the Fork button. Clone the fork, make changes, create a Pull Request to the original project.

Can forks be used commercially?

Yes, depending on the license. MIT/Apache allow commercial use. GPL requires opening the modified code.

What alternative software exists for Windows in Russia?

Astra Linux, RED OS, Alt OS, ROSA Linux. They support Russian DBMS and cryptographic protection tools.

What can replace Microsoft Office?

Russian-7 Office, MyOffice, LibreOffice. For documents, EDF systems integrating with domestic office suites are used.

Which domestic DBMS exist?

Postgres Pro, Tantor, Red Database, LINTER. They are used in state systems and at CII facilities.

Is it difficult to switch to alternative software?

It is a complex process taking 6-24 months: data migration, training and integration. With proper planning it can be done without significant downtime.

What alternative low-code platforms exist?

SINTEZ-M, ELMA 365, SimpleOne, Visary. They offer similar functionality to Microsoft Power Apps and Mendix.

What are the requirements for alternative software for government bodies?

Inclusion in the Register of Russian Software, FSTEC certification, support for CIPF with GOST algorithms.

What are the stages of transition to alternative software?

Audit, selection, testing, data migration, staff training, implementation. Conduct the transition in stages.

How is a DBMS different from a database?

A database is the data itself. A DBMS is the program that manages it. PostgreSQL is a DBMS; the data it stores is a database.

Which DBMS are used in Russia for import substitution?

Postgres Pro, Tantor, Red Database and LINTER, included in the Register of Russian Software.

What is a relational DBMS and when is it used?

Data organized as linked tables, using SQL, providing ACID transactions. Used in banks and document flow.

What is NoSQL and when is it used?

NoSQL does not use traditional relational models. Used for unstructured data and high loads: MongoDB, Redis, Cassandra, Neo4j.

How do I choose a DBMS for a project?

Consider data structure, transaction requirements, volume, load, scaling and certification requirements.

How is security ensured in DBMS for government systems?

FSTEC certification, CIPF, access control, auditing and integration with SIEM.

What skills are needed to work with a DBMS?

SQL knowledge, database normalization, query optimization. Administrator skills include performance tuning and backup management.

Which laws regulate the IT sector in Russia?

152-FZ, 187-FZ, 63-FZ, 149-FZ, 44-FZ and 223-FZ.

What is software import substitution and how is it regulated?

The transition of government bodies and CII facilities to domestic software, regulated by government resolutions. Software from the Register is mandatory.

What requirements are imposed on CIPF in Russia?

CIPF must be certified by the FSB and implement GOST algorithms.

What benefits are provided for IT companies in Russia?

Reduced insurance premiums (7.6%), 3% profit tax, VAT exemption, grants and preferential loans. Accreditation with the Ministry of Digital Development is required.

How does government regulation affect Low-code platforms?

For state systems, platforms must be in the Register and support CIPF and electronic signatures.

What data localization requirements exist in Russia?

Personal data of Russian citizens must be stored and processed on servers in Russia (152-FZ, 242-FZ).

What changes in legislation are expected in IT?

Stricter CII requirements, AI regulation, increased fines for personal data violations and further import substitution.

What is a license for a program?

A license is the rules by which you can use a program. It defines: how many installs, whether you can change the code and whether you can transfer it to others. Without a license, using software is illegal.

How does MIT differ from GPL?

MIT is the most permissive license: it can be used, modified and sold without restrictions. GPL requires that all changes be distributed under the same license (copyleft). MIT is easier for commercial use.

Is a license needed for open-source?

Yes, open-source also requires a license. An open-source license (MIT, GPL, Apache) defines the conditions of use and distribution of the code. Without a license, the code is automatically protected by copyright.

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