Import Substitution and Relations with Equipment Manufacturers

In order to ensure technological safety of the power grid sector and reduce dependence on foreign products, equipment, technical devices and works/services of foreign companies and the use of foreign software, Rosseti Kuban is following the import substitution plan of Rosseti, PJSC as well as the response plan in case of restrictions on the use of imported products.

The Company has an action plan in place to determine the level of its dependence on imported products. The main goal of the plan is to identify the technological and economic risks that the Company faces from using imported goods in the event of a significant fluctuation in foreign exchange rates and/or the imposition of sanctions by foreign governments, and to develop effective countermeasures to those risks, which includes by increasing the effectiveness of communication with Russian Federation defence industry enterprises.

In the reporting year, the share of imported equipment in the total volume of purchases of major electrical equipment and materials in the Company was 2.75%, excluding the volume of products purchased from manufacturers in the Republic of Belarus, and 8.04%, including such purchases.

The development of core IT infrastructure and services in 2023 involved as follows:

  • Russian software was purchased for the transition to the predominant use of domestic software: operating systems, database management system, virtualisation systems, backup systems, graphic editors, etc.
  • Domestic server equipment was purchased for scaling and migration of the corporate software system
  • Testing of domestic solutions for backup systems (Cyber Backup by Cyberprotect) and catalogue and virtualisation service (SpaceVM by DACOM M) was carried out
  • Server capacities were deployed to introduce an automated information system for processing customer requests

The Company’s digital transformation programme contains a plan of transition to the predominant use of domestic radio‑electronic products until 2024 and an action plan for software import substitution for 2022–2024. In 2023, the share of expenditures on the purchase of Russian radioelectronic products was 79.5%, and that for Russian software was 98%.