Phase 2 Rewrite: Digitizing Russia’s Water Utilities

Today, in Russia, water utilities are increasingly guided by smart monitoring systems, and this trend is most visible in major urban centers where digital tools already touch the daily operations of water networks. An in-depth discussion with Viktor Rubezhnoy, who leads Digital Sourcing at Rusatom Infrastructure Solutions JSC—part of Rosatom State Corporation—revealed that in many cities the share of digitally managed water infrastructure has climbed to about 20 percent. There is a clear path toward broader adoption: over the next decade, Rubezhnoy believes the proportion could rise significantly, potentially reaching 50 to 70 percent as technology becomes more accessible and cost-effective for regional utilities. The pace of change will not be uniform, but the direction is unmistakable: more cities will go digital, and some rural areas will follow if economic and logistical realities permit it. Many small settlements across Russia remain far from modernization, often served by municipal unitary enterprises or state unitary enterprises whose operations prove difficult to modernize without substantial subsidies or centralized programs. Rubezhnoy notes that the widespread modernization of these smaller points would be financially challenging for local authorities, even as national policy pushes for broader digital integration. The practical takeaway is that urban centers will lead the way while rural nodes gradually catch up, creating a nationwide mosaic of digital maturity that will vary by region and budget capacity. This uneven landscape does not diminish the overall trajectory, but it does highlight the need for targeted investment, policy support, and scalable solutions that can be deployed where they are most needed and most feasible. In the expert’s view, the deeper digitization of water delivery systems will have tangible economic benefits: it can help stabilize or even reduce the rise in consumer costs for housing and communal services by improving operational efficiency, energy management, leak detection, and maintenance planning. Smart monitoring platforms allow operators to detect anomalies sooner, coordinate response efforts more quickly, and minimize water loss, which translates into better service reliability for households and institutions. From a customer perspective, that reliability means fewer interruptions, more predictable bills, and a higher level of trust in the infrastructure that underpins daily life. For policymakers and utility managers, the promise lies in a more resilient system that can adapt to changing demand patterns, weather extremes, and aging infrastructure without proportionally inflating prices. The broader narrative is one of technological empowerment: by embracing data-driven decision making, utilities can optimize resource use, curb waste, and extend the life of existing networks. While the path to full digitization is not without hurdles—costs, interoperability challenges, and the need for consistent standards—the potential gains in service quality and system reliability are driving continued investment and pilot programs. The interview with Viktor Rubezhnoy underscores that the digitization journey is both expansive and incremental, with urban-rural differentials shaping how quickly and where new solutions take root. As Russia continues to explore these digital frontiers, the experience of cities that have already embraced smart monitoring serves as a practical guide for other regions, offering lessons on implementation strategies, data governance, and the governance models that support large-scale modernization. In sum, the move toward digitized water utilities represents a major shift in how communities manage essential services, balancing immediate cost considerations with long-term resilience and convenience for residents. This evolving story, highlighted in the interview with Socialbites.ca, reflects a strategic national effort to harness digital technology for improved public services and greater transparency in the management of water resources.