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 Kuban as well as the response plan in case of restrictions on the use of imported products.

The Company prepared an action plan to determine the level of dependence of Rosseti Kuban 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 procurement of basic electrical equipment and materials in the Company was 8.31%, of which 57% is equipment (power transformers 6–10 kV, cosine capacitors) produced by member countries of the Customs Union of the Eurasian Economic Union (Republic of Belarus, Republic of Kazakhstan), which passed quality control (certification) and obtaining documents confirming the ability to use the tested equipment, materials and systems at the facilities of Rosseti Kuban.

In order to decide whether local software solutions may replace imported ones, domestic operating systems and virtualisation technologies were tested on Rosseti Kuban’s server facilities in 2022 based on recommendations from domestic software developers.