To reduce dependence on foreign technology, Russia is considering imposing fees on domestic companies that use foreign software, according to Digital Development Minister Maksut Shadaev.

The announcement, reported by the TASS news agency on Tuesday, is part of the Russian government’s broader strategy to achieve technological independence amid ongoing Western sanctions.

President Vladimir Putin has emphasized the importance of technological sovereignty as a strategic goal for Russia. This push has gained urgency following the imposition of sanctions by Western nations in response to Russia’s actions in Ukraine.

These sanctions aim to curtail Moscow’s access to foreign technology and equipment, potentially impacting its military capabilities.

In line with this objective, Putin signed a decree in early May mandating that at least 80% of Russian companies in key economic sectors transition to using domestically produced software by 2030. This ambitious target underscores the government’s commitment to fostering a self-reliant tech industry.

Despite these efforts, many Russian companies continue to rely on foreign software for their daily operations. This dependency persists even though an EU sanctions package passed in December prohibits European companies from supplying enterprise and design-related software to Russia.

Minister Shadaev outlined the proposed policy during an IT conference, suggesting that introducing a levy on foreign software would “equalize” the playing field between foreign and Russian software providers.

“We believe that we need to create additional economic incentives for businesses to switch to Russian solutions, and this should be linked to certain tax motivations,” Shadaev stated, as reported by TASS. However, he did not provide details on the proposed fee structure or the mechanism for its collection.

The proposed policy aims to incentivize Russian companies to adopt local software solutions by making foreign alternatives financially less attractive.

The push for technological independence is not new. Over the past few years, Russia has made several efforts to develop its technological infrastructure. Initiatives such as the development of the Russian operating system Astra Linux, the creation of Russian social media platforms like VKontakte and Odnoklassniki, and the promotion of Yandex as a local alternative to Google demonstrate the government’s long-standing commitment to this goal.