Russian Corp. Rostec Intends To Reduce Blockchain Expenditure By 50%

Russian Corp. Rostec Intends To Reduce Blockchain Expenditure By 50%

Blockchain News
January 28, 2020 Editor's Desk
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Russian government-backed corporation Rostec aims to decrease expenditure on blockchain development in the nation by almost 50%. According to Rostec’s roadmap, the company is intending to allocate 28.4 billion rubles ($453.2 million) on the evolution of blockchain technologies in Russia by 2024, rather than an initial 55 billion ($877.8 million) to 85 billion rubles ($1.3
Rostec

Russian government-backed corporation Rostec aims to decrease expenditure on blockchain development in the nation by almost 50%.

According to Rostec’s roadmap, the company is intending to allocate 28.4 billion rubles ($453.2 million) on the evolution of blockchain technologies in Russia by 2024, rather than an initial 55 billion ($877.8 million) to 85 billion rubles ($1.3 billion). National news outlet Kommersant announced the news on Jan. 27.

The corporation mentioned that the introduction of blockchain technology into the product labeling system would need 650 million rubles ($10.3 million), into healthcare system 1.17 billion rubles ($18.6 million), of which 575 million rubles ($9.1 million) will be allotted to the tracking system of artificial and pharmaceuticals consumption. The implementation of blockchain in the housing and utility services will require 475 million rubles ($7.5 million).

Rostec has updated its assessment of the possible direct and indirect economic impacts of blockchain development in the country. In contrast, earlier versions of the roadmap recommended significantly more substantial investments in the technology. The decreased forecast of the economic effect is ostensibly connected to the difference in the macroeconomic situation.

Rostec’s spokesperson specified that currently, there is a shift in the understanding of the technology, “a self-cleaning of the market from copy projects that do not have a development strategy and a certain market niche.” At the same time, the Russian market in these situations is developing most placidly and is choosing the path of “less risky development.”

The corporation has sent the document to the Ministry of Communications and the Analytical Center for the government of Russia for approval.

Worth noting, the progress comes in the wake of the election of the new Prime Minister of the Russian Federation, Mikhail Mishustin, who declared on the country to prioritize the expansion of the digital economy.

In the meantime, Russia has executed several blockchain projects in various sectors. Last December, Russia’s national energy grid operator Rosetti began testing a blockchain solution for payments in the retail electricity sector. The project intends to automate and make deals between energy producers, suppliers, and customers more transparent.

The country’s mining and smelting colossus Nornickel also started testing its program for digital metal tokens in association with the physical commodities trading group ‘Trafigura Group Ltd.,’ metals finance, and logistics firm ‘Traxys SA’ and materials technology and recycling group ‘Umicore SA.’

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