A socially oriented non-financial development institution and a major organizer of international conventions, congress, exhibitions, business, social and sporting, public, and cultural events.

The Roscongress Foundation is a socially oriented non-financial development institution and a major organizer of international conventions; exhibitions; and business, public, sporting, and cultural events. It was established in pursuance of a decision by the President of the Russian Federation.

The Foundation was established in 2007 with the aim of facilitating the development of Russia’s economic potential, promoting its national interests, and strengthening the country’s image. One of the roles of the Foundation is to comprehensively evaluate, analyse, and cover issues on the Russian and global economic agendas. It also offers administrative services, provides promotional support for business projects and attracting investment, and helps foster social entrepreneurship and charitable initiatives.

Each year, the Foundation’s events draw participants from 208 countries and territories, with more than 15,000 media representatives working on-site at Roscongress’ various venues. The Foundation benefits from analytical and professional expertise provided by 5000 people working in Russia and abroad. In addition, it works in close cooperation with 160 economic partners; industrialists’ and entrepreneurs’ unions; and financial, trade, and business associations from 75 countries worldwide.

The Roscongress Foundation has Telegram channels in Russian (t.me/Roscongress), English (t.me/RoscongressDirect), and Spanish (t.me/RoscongressEsp). Official website and Information and Analytical System of the Roscongress Foundation: roscongress.org.

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Defense Industry and the Fuel and Energy Sector Inter-Enterprise Collaboration for Import Substitution and Technological Development
13 October 2021
16:30—17:45
KEY CONCLUSIONS
The defence industry could become a major supporting pillar for the Russian energy sector

The unique expertise which has been successfully maintained in the Russian defence industry is often underestimated. The potential and opportunities that exist are yet to be uncovered. Today we are talking about the nation’s technological security, because the oil and gas sector is under marked geopolitical pressure, which in turn is having an impact on the growth of the industry and the development of the mineral resource base. And symbiosis of the fuel and energy sector and the defence industry is what holds the key to raising efficiency — Oleg Zhdaneev, Deputy General Director - Head of Import Substitution in Oil and Energy Complex Competence Center, Russian Energy Agency of the Ministry of Energy of the Russian Federation.

The defence industry has come up with numerous developments since the Soviet era. And today there is an entire range of solutions. Energy accumulation systems are one such example. We know that defence enterprises have made great advances in this area, and the accumulation system is already being actively employed in missile and tank forces. We count a great deal on the defence industry, and the leverage it can offer in terms of the energy transition — Yevgeny Gribov, Director, Department of Engineering for the Fuel and Energy Industry, Ministry of Industry and Trade of the Russian Federation.

Defence enterprises are working closely with energy producers, and are ready to strengthen relations further

“In 2020, 20% of our civilian sales revenue came from the fuel and energy sector. This is a good result. This mainly came from supplies of equipment for nuclear power plants and thermal power stations, i.e., gas vent pipes designed to remove gas and emissions. We can offer solutions in alternative energy, and manufacture equipment for extracting oil and gas — Igor Moiseev, Head of the Department for Civilian Products, Tactical Missiles Corporation.

We are developing in all areas together with the fuel and energy sector. For several companies forming part of the state corporation, Transneft is a key partner. We have a joint venture involving the production of high-pressure hoses for pipelines. We are also examining projects offering high potential, such as the development of an electrical system to manage underwater production units — Vitaly Shevtsov, Director, Diversification Centre, Roscosmos State Corporation for Space Activities.

ISSUES
A lack of Russian-made equipment and software

There remain niches whereby we have no other option than to procure equipment from abroad. These are complex systems and complex high-voltage equipment. These are switches and measuring current transformers. It is equipment which is fairly difficult to manufacture. And economically, it is difficult to justify making it here, because of the one-off nature of the orders. There is also a difficulty regarding system-wide software. Here the percentage of foreign products in use is very high — Grigory Gladkovsky, Deputy Chief Engineer, Rosseti.

I will say a few words about manufacturing comprehensive equipment for producing oil and gas through fracking. Russian-made equipment accounts for less than 1% of the total – that’s what official experts have concluded — Yury Solomonov, General Designer for the Development of Strategic Missile Systems, Moscow Institute of Heat Engineering Corporation.

A flawed legislative framework

We are interested in acquiring products made by the defence industry. However, even when in possession of messages from government body executives, it is difficult to do. Legislation stipulates that a tender is needed, and we cannot simply promise that in two years we’ll buy what is needed. That would not be in compliance with the need to hold a tender — Grigory Gladkovsky, Deputy Chief Engineer, Rosseti.

It is very difficult for organizations doing their procurement according to Federal Law 223-FZ to forge robust partnerships when it comes to the fuel and energy sector and defence industry. There is no tried-and-tested deferred delivery mechanism in place. The defence industry can do it, but in two years. And they need to understand what the order is. They need to be sure that in two years, when they supply the equipment which fully meets your requirements, you will buy it — Oleg Zhdaneev, Deputy General Director - Head of Import Substitution in Oil and Energy Complex Competence Center, Russian Energy Agency of the Ministry of Energy of the Russian Federation.

SOLUTIONS
Government support and involvement in cooperation between fuel and energy sector and defence industry enterprises

We work with manufacturers. We are talking and endeavouring to push the matter of localizing complex electrotechnical products. A government resolution on end-to-end projects has been issued which aims to address the issue through subsidizing manufacturers of key electronic components. It is our view that subsidizing manufacturers is the right step to take. When a supplier of end-user equipment comes to us with a competitive price, there is every possibility of us procuring the equipment and using it — Grigory Gladkovsky, Deputy Chief Engineer, Rosseti.

I proposed adopting a holistic approach to the issue of diversification: this mechanism is set out in a special document that is drafted once every 10 years, called the State Armament Programme. This programme classifies the armaments which correspond to material, technical, and financial resources. It is the result of a very complex process by the defence industry, the Ministry of Defence of the Russian Federation, the Ministry of Finance of the Russian Federation, the Ministry of Economic Development of the Russian Federation – all the key executive bodies. This document is vital for solving the issue — Yury Solomonov, General Designer for the Development of Strategic Missile Systems, Moscow Institute of Heat Engineering Corporation.

The Ministry of Industry and Trade of the Russian Federation is constantly working to replace imports of equipment for the oil and gas industry. This year, a revised import substitution plan for the industry was drafted, with updates covering 37 technical areas. Our partnership with the defence industry is extremely important. Here we are focused on the development of Russian expertise, with the aim of reducing our dependence on foreign equipment when it comes to producing liquefied natural gas, developing offshore deposits, creating rotary steerable systems, and also fracking equipment — Yevgeny Gribov, Director, Department of Engineering for the Fuel and Energy Industry, Ministry of Industry and Trade of the Russian Federation.

The material was prepared by the Russian news agency TASS