Minzifra State Fields Halts Software Development in Market

Ministers have proposed a new regulation to ban state-owned companies’ “IT-daughters” from creating basic software already available in the Russian market for internal use. This announcement was made by Maksut Shadaev, the head of the department, during the Tadviser Summit 2024 conference.

Shadaev mentioned that the prohibition would be applicable to software that state-owned companies do not intend to commercialize. The department aims to draft the necessary regulatory documents by the end of 2024.

The rationale behind this initiative, as explained by Shadaev, is to consolidate financial resources towards developing competitive products that the broader market can utilize, rather than catering to the needs of individual state-owned companies.

Shadaev stated, “I am in favor of restricting the development of products that already exist in the commercial IT market, with the exception being if a state-owned company is intentionally venturing into IT business aimed at generating external revenue, rather than solely internal operations.”

Furthermore, Shadaev highlighted that Prime Minister Mishustin also addressed this issue at the May Forum of Tsipr-2024 in Nizhny Novgorod, indicating that Minzifra is awaiting government directives to implement these restrictions.

By the end of 2024, the Ministry plans to establish rules prohibiting the funding of basic software development that duplicates existing products in the market.

/Reports, release notes, official announcements.