Two-thirds of the software used by Russia’s regional governments is now made in Russia as a campaign to strip out foreign-made software gather momentum as part of the Kremlin’s “digital sovereign” campaign.

Russia’s public sector exceeded its targets for adopting domestically produced software in 2025, as Moscow accelerated efforts to reduce dependence on western technology providers following years of sanctions pressure.

Data from the federal project “Domestic Solutions”, reported by TASS on May 6, showed that Russian-made software accounted for 68.72% of programmes used by regional governments at the end of 2025, above the official target of 63.38%.

Usage rates were even higher among federal government agencies, state-owned corporations and companies with more than 50% Russian ownership, where domestic software represented 76.29% of systems in use, compared with a planned level of 74%.

The figures underline the Kremlin’s push for technological self-sufficiency after many western software groups, including Microsoft (MSFT) and SAP (SAP), curtailed operations in Russia following the country’s full-scale invasion of Ukraine in 2022. Russian authorities have since introduced measures encouraging state bodies and strategic industries to replace foreign operating systems, databases and enterprise software with locally developed alternatives.

According to the data, spending on Russian IT products also surpassed government expectations. More than RUB5 trillion ($54.7bn) was invested in domestic IT solutions in 2025, exceeding the planned RUB4.5 trillion ($49.2bn).

The federal project said the “share of Russian organisations in key economic sectors that have transitioned to Russian-made core and application software is 51.1% by the end of 2025”. The measure refers to organisations using domestic products in “systems supporting core production and management processes”.

Russia’s technology ministry and state-backed developers have promoted local software platforms as substitutes for western systems across sectors including banking, energy, transport and public administration. However, Russian businesses have previously warned of higher migration costs and compatibility issues linked to replacing established foreign software ecosystems.

The Kremlin has repeatedly described digital sovereignty as a strategic priority, arguing that reliance on imported technology creates security and economic vulnerabilities amid continuing geopolitical tensions.

Russia has emerged as an increasingly strong software producer, led by companies like IBS Group is best known as the leading provider of IT solutions for Russian businesses and regional governments – Russia’s answer to SAP.

EU has the same plan

The EU has the same plane for the same reasons: fears that national security is endangered by using foreign-made software on crucial governmental systems. The difference is the EU bill for swapping software is going to be enormous and work as yet to begin in earnest.

A proposed EU Cybersecurity Act that would restrict Chinese suppliers from participating in critical infrastructure projects could cost the bloc €367.8bn ($431.4bn) over the next five years, according to a study by the China Chamber of Commerce to the EU and KPMG.

The report said the largest share of the projected costs would come from removing and replacing Chinese-made hardware, estimated at €146.2bn ($171.4bn). Additional expenses would stem from resource reallocation, service disruptions, workforce adjustments and legal costs linked to compliance with the proposed legislation.

The revised Cybersecurity Act, introduced by the European Commission in January, would limit the use of Chinese equipment across 18 sectors considered critical to the EU economy.

The sectors covered by the proposal include energy, transport, healthcare, banking, digital networks and the space industry, according to the study.

The report warned that implementing the restrictions could create significant operational and financial pressures for businesses and public infrastructure operators across the bloc.