The Evolution of the Concept: From Hardware to Competence

Over the past three years, the concept of import substitution has undergone a profound transformation.
The first wave (2022–2023) was reactive — an urgent search for alternatives to critical spare parts, machinery, and software that could no longer be imported.
The second wave (2024) focused on localization of production within Russia, often through joint ventures with partner countries.
The third wave, which became evident in September 2025, represents import substitution of competencies. The emphasis is now on developing a domestic research and technology base, education system, and industry standards that enable not just replication but creation — often resulting in superior, more efficient solutions. A vivid example is the launch of serial production of CNC systems (computer numerical control) with fully Russian architecture and an operating system independent of foreign platforms.

Successful Case Studies: From Wind Energy to Machine Tool Manufacturing

Wind Energy.
Originally based on imported technologies, Russia’s wind energy sector now stands as one of the most successful examples of deep import substitution. In September, NovaWind (part of Rosatom) announced the launch of a full-cycle production and service facility for wind turbine blades. In addition to localizing the production line, engineers developed a domestic composite material with improved resistance to icing and sand abrasion — critical for Arctic and steppe conditions.
Oil and Gas Equipment Manufacturing.
In Tyumen, the Gazmash plant began producing fully Russian turboexpanders — key components for low-temperature gas separation. Previously imported from Germany and the United States, these systems are now developed in cooperation with the Siberian Branch of the Russian Academy of Sciences, using a new heat-resistant alloy that surpasses foreign equivalents in durability and efficiency.
Machine Tool Building.
A significant milestone was the signing of an agreement between Stankoprom Group and Ulyanovsk State Technical University to establish an engineering center focused on developing domestic linear motors and high-precision ball-screw drives (BSD) for CNC machines — the “heart” of any precision tool. Localizing their production closes one of the final and most complex gaps in the national machine-tool supply chain.

The Role of Education and Standardization

Human capital has become a cornerstone of the new import substitution strategy.
In September, Russia’s Ministry of Science and Higher Education approved 15 new academic programs aimed at training engineers in additive manufacturing, cyber-physical systems, and industrial IoT architecture — each designed in partnership with major industrial corporations.
At the same time, active work continues on domestic industrial standards. For instance, Rostec introduced the new “ROTECH-Digital.Industrial Safety” standard, regulating the use of predictive analytics systems to prevent accidents at hazardous production facilities. This framework is stricter and more detailed than its international analogues, reflecting the realities of Russian industrial operations and climate conditions.

Challenges and Prospects

Despite the progress, several challenges remain. The main one is continued dependence on imports of specialized measurement instruments and related software. To address this, Rostelecom and Yandex have announced the development of a domestic cloud platform for industrial analytics, capable of integrating data from any type of sensor.
Another pressing issue is the shortage of highly qualified personnel — welders, equipment technicians, and robotics engineers. The government’s “Professionalitet” program seeks to bridge this gap by establishing educational-production clusters directly within factory sites, ensuring that training is aligned with real-world industrial needs.

Conclusion

Import substitution in Russia has shifted from a defensive strategy to an offensive one. The country is no longer merely replacing unavailable products — it is building its own technological foundation, optimized for local realities. The focus has moved from imitation to innovation, producing solutions that often exceed foreign counterparts, especially in extreme operating conditions.
The success of this process is driven not only by state policy but by close collaboration between science, education, and industry, vividly demonstrated in September 2025. This marks the emergence of a new stage in Russia’s industrial sovereignty — Import Substitution 3.0.