In statements made last week at the St. Petersburg International Economic Forum, Russian president Vladimir Putin displayed an unexpectedly strong commitment to the digital economy, in which he sees “a new paradigm for the development of the state, the economy, and society.”
“We are capable of taking the lead in a number of areas of the so-called new economy, primarily the digital economy,” he said on Friday as India’s Prime Minister Narendra Modi, Austria’s Federal Chancellor Christian Kern and President of Moldova Igor Dodon were participating in the meeting.
In his speech, Putin outlined what steps have been or still need to be taken to ensure the emergence of the digital economy in Russia.
From tech infrastructure to digital literacy
According to the president, Russia considers developing “an entirely new, flexible regulatory foundation for introducing digital technology in all areas of life.”
In particular:
- The government will support digital technological companies in such areas as big data processing and analysis, artificial intelligence (AI), neurotechnology, as well as virtual and augmented reality (VR and AR), among others.
- Russia will involve state and private resources to build an advanced support infrastructure for the digital economy, including secure communications lines and data processing centers.
- Russia seeks to increase the number of graduates specializing in the digital economy and achieve universal digital literacy in the future.
As part of this new strategy, Russia intends to launch innovative R&D centers which will draw together education, research, hi-tech and venture companies at the country’s leading higher education institutions.
Corporations called to contribute
Putin suggested that Russia’s largest corporations contribute to the process.
“I am calling for the management of our major companies – Rostec, the Federal Space Agency, the United Aircraft Corporation, the United Shipbuilding Corporation, Rosatom and other domestic high-tech companies – to actively use the opportunities opening up,” said Putin.
“It is important to create subdivisions that will work closely with startups and small innovative companies, as well as venture funds, to finance such projects. I am asking you to make sure that this does not remain empty rhetoric. I am asking you to do this in practice and as soon as possible,” the Russian president added.
Russian IT firms compete globally
Vladimir Putin also pointed out a huge potential of Russian IT companies which “are certainly competitive on a global scale.”
“They are not just coming up with the best, unique software solutions, but are also creating a new area of knowledge, a new environment for developing the economy and life,” he stated.
Thus far the Russian President had displayed more cautious views on the digital economy. Thus last year Putin ambiguously stated that, while new technologies such as Uber or Alibaba should not be demonized, they may still threaten the traditional economy in the future.
Over the past few years, however, the Russian government launched or continued supporting important programs to develop innovations and make the country less dependent upon foreign technologies.
Meeting with Ethereum founder
The Russian president also showed interest in Ethereum, Bitcoin’s rival in the field of cryptocurrencies. He met Vitalik Buterin, the founder of Ethereum —whose family emigrated from Russia to Canada when he was six — on the sidelines of the forum.
Bloomberg saw in this brief meeting a starting point to discuss a potential large-scale experimentation for Ethereum in Russia, as the country is making notable steps towards the recognition of cryptocurrencies.
“Russia is the most impressive field for controlled experiments any techie could dream of; in Putin’s system, decisions can be made fast, and mistakes can be forgiven in the name of Russia’s great leap forward,” writes Bloomberg columnist Leonid Bershidsky.
Sources: Official site of the President of Russia, Bloomberg
