The Russian Ministry of Industry and Trade has proposed new requirements for electronics manufacturers to maintain their status in the industry registry. Companies will be required to reinvest funds saved through tax incentives into production modernization, R&D, equipment procurement, and personnel training. The mandatory investment amount must be at least double the tax savings.
Additionally, companies must ensure that at least 70% of their revenue from proprietary electronic products comes from items included in the Russian industrial product registry. These changes are expected to be implemented starting in 2027 through amendments to Government Decree No. 2392, with a draft project prepared as of October 8, 2026.
Failure to meet the 70% revenue threshold or the reinvestment obligations may result in a company being excluded from the registry for a period of two years. Industry representatives suggest that while these measures aim to boost localization, they could complicate registry entry processes and potentially impact the development of non-registry product segments.
Experts recommend a balanced approach to these requirements, suggesting the implementation of a comprehensive traceability system via the State Information System for Industry (GISP). This would allow for real-time monitoring of product status and component procurement volumes, helping to prevent market instability and ensuring that requirements are adapted to specific product niches.
