There are currently a number of unresolved issues acting as constraining factors on the development of the Russian power grid: contradictions in the objectives of Rosseti, a socially responsible and public company; pricing problems in the electric power industry (tariffs, cross subsidization and utility connections); network fragmentation and a high number of local grid operators; depreciation of funds and low levels of automation, digitalization and network visibility. The development of new technologies and a reduction of energy consumption in the distribution system threaten the future development prospects of the power grid. At the same time, the world is entering a fourth phase of energy transition, the fundamental trends of which are: digitalization (transition from analogue, centralized and standardized technologies to digital, distributed and personalized ones); electrification (electric transportation, transition of the heating supply system to electric power); decentralization (development of distributed generation, energy accumulation and storage technologies, energy efficiency, and demand management). These trends and challenges, both external and internal, are bringing changes to the global electric power sector and forcing an overhaul of the Russian power grid. What is the governments vision of the current situation in the power grid and the coming transformations? What is Rossetis role and what are its strategic plans with respect to the ongoing changes (innovative and technological development, digital transformation and diversification of the power grid, support for import substitution, increasing investment attractiveness, etc.)?