Russia lacks funds for tech breakthrough

Russia is undergoing one of the most turbulent and difficult periods “in the history of humanity,” according to Sergei Chemezov, head of the state defense and technology conglomerate Rostec.

In a column published by RBC, Chemezov described the country’s current condition as a storm “with no end in sight” and warned that optimism under such conditions is difficult.

“This storm must be passed through with confidence and a clear understanding of direction,” Chemezov wrote. “We simply must emerge from it as victors.”

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According to the Rostec chief, Russia’s long-term survival hinges on rejecting unrealistic ambitions of catching up with Western technologies that took decades and trillions in investment to mature.

Instead, Chemezov urged the Russian government to focus on breakthrough innovations such as artificial intelligence, quantum technologies, and high-tech industry development—areas where, he said, Russia could create new sectors rather than chase existing ones.

Chemezov emphasized that Russia’s technological future must rest on import substitution and “technological sovereignty,” calling these the foundation of the national vision. But he warned that achieving this will require direct government intervention in the financial sector to make capital more accessible.

“It won’t be possible if the government doesn’t provide long-term, low-interest financing to invest in the development of new technologies and products,” Chemezov stated. He added that high lending costs are currently preventing Rostec enterprises from investing in modernization, R&D, and production expansion.

Rostec, one of Russia’s largest defense and industrial groups, has adopted a new strategy extending through 2036. According to Chemezov, the plan sets “ambitious goals,” including expanding its product range and increasing its presence in both defense and civilian international markets.

To sustain Russia through the next 15 years, Chemezov argued, the country must invest in domestic high-tech production, basic and applied science, and the development of a national microelectronics base. He also called for investment in training a new generation of highly qualified specialists.

However, Chemezov placed equal emphasis on ideology. He called on government and industry leaders to promote “core values” such as patriotism, service to the nation, solidarity, and justice. These values, he said, must not only be spoken about but instilled in daily life and demonstrated through personal example.

“It is important not only to speak about our values, but to root them in the public consciousness and everyday life—showing young people how to act by our own behavior,” Chemezov concluded.

The remarks reflect growing concern within Russia’s state industrial sector over the long-term sustainability of the economy amid international sanctions, technological isolation, and wartime resource pressures.

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