Russian electronics and semiconductor producers have urged government action to impose substantial import duties on smart cards, including SIM cards, debit cards, and transportation cards. They argue that duties in the range of 50 to 100 percent would curb the influx of Chinese competitors and give domestic manufacturers a fair chance to scale and modernize. Reports from Kommersant have highlighted this call for protection as part of a broader strategy to safeguard Russia’s strategic tech sector and reduce vulnerability to global supply chains. The proposal comes amid concerns that current duties and tax regimes do not sufficiently shield local producers, potentially exposing the market to rapid price swings and capacity constraints that could affect accessibility and reliability for end users.
The autonomous non-commercial organization Telecommunications Technologies has officially transmitted a letter to the Ministry of Industry and Trade of the Russian Federation outlining a plan to support domestic card manufacturing. The document emphasizes that Russian facilities are capable of meeting customer demand and argues that existing conditions—zero duties on finished smart cards and roughly 7 percent on components—place Russian firms at a disadvantage in comparison with foreign producers who benefit from cheaper input costs and broader procurement networks. Market players warn that without protective measures, Russia could see a rapid expansion of Chinese card production within its borders, which would likely result in a steep price gap and place sustained pressure on domestic manufacturers. A source familiar with industry discussions notes that the price difference between a Chinese smart card and a Russian card employing imported chips can approach fivefold, a disparity seen as a direct threat to the viability of local plants and the jobs tied to them.
Earlier statements indicated that Russia plans to roll out electronic identity credentials in stages, with pilot testing in Moscow, the Moscow region, and Tatarstan. The initiative involves transitioning away from paper passports for citizens who obtain electronic identity cards, aligning with a broader push toward digitized public services and secure identity verification. The unfolding policy and market dynamics raise questions about how Russia will balance the goals of technological sovereignty, cost containment for consumers, and the competitiveness of its electronics sector in a world where Chinese manufacturers continue to grow their footprint. Observers suggest that careful calibration of tariffs, incentives for local production, and guarantees of uninterrupted supply will be essential to avoid unintended disruptions while preserving the strategic advantages of a robust domestic card industry.