IT Firms to Get Systemically Significant Status, Cabinet Approves Bill

The Russian government has approved a bill to introduce a new status for IT companies known as “systematically significant”. This status will be granted to companies that invest their own funds to develop products for customers according to the “Market in exchange for investments” program. The announcement was made by the head of the Ministry of Civil Academy of Sciences, Maksut Shadaev, at a meeting of the Arpp “Russian software” association.

This move was preceded by the Deputy Minister of Digital Development of Communications and Mass Communications, Maxim Parshin, unveiling the Ministry of Cyphra’s plans for new forms of support for Russian software developers. The mechanism “Market in exchange for investments” requires a developer to conclude an agreement with the government to develop their product to the requirements of industrial customers, with the functionality of the developed software fixed by the agreement. The competency center for import substitution in the field of ICT (TSKIT) and Minzifra will act as arbitrators in case of issues.

In return, the government will provide certain preferences for access to the market, said Parshin. For instance, companies with the status of “systematically significant” will receive preferences when attempting to participate in state procurement in the Formula “second extra”.

/Reports, release notes, official announcements.