FSK YeES : FGC UES brings up purchase share of Russian manufactured equipment to 80%

As of year-end 2016, it is planned by FGC UES (a part of Rosseti Group) to bring up the share of main electrical equipment purchased from Russian manufacturers to 80%. In 2014, the rate was 45% or less.

The company is implementing a five-year substitution program for foreign-made equipment, technologies, materials and systems.

In 2016, FGC UES approved a method for determining the country of origin of secondary infrastructure equipment and its elements that had been tested with major contractors. The method will improve mechanisms of targeted support to Russian manufacturers of secondary equipment.

FGC UES promoted cooperation between Russian and foreign manufacturers of electrical products. In particular, it provided support to Tolyattinsky Transformator and Shanghai Huaming Power Equipment Co.Ltd. in establishing a joint venture for TCUL (tap change under load) equipment production.

To stimulate the production localization of SF6 insulated switchgears, FGC UES initiated the revision of import customs duties for GIS and GIS components. Cooperation with a government commission resulted in sending a request for feasibility analyses of zeroing customs duties rates of GIS components to the Eurasian Economic Commission.

In 2016, FGC UES held meetings with foreign companies to support Russian equipment export. Negotiations were held with Elia (Belgium) and EVN (Vietnam) to exchange the experience of electrical equipment use. They resulted in signing contracts for the supply of Russian high-voltage bushings for Vietnamese and Belgian energy facilities, as well as in obtaining a proposal to participate in the competition for elaborating energy system development strategy for Vietnam.

The company supports interaction with regional public authorities, development institutions and public organizations.

It cooperates with Rusnano to exchange information about manufacturing capabilities of Russian enterprises. In particular, it was proposed to support Uralelektrotyazhmash in expanding its electrical products range.

At the end of the year, Andrey Murov, head of FGC UES, held a working meeting with leading Russian manufacturers of power transformers and shunt reactors to discuss product operation and features improvement.

In 2016, the representatives of FGC UES participated in parliamentary hearings, working group meetings under Russian Ministry of Industry and Trade, expert session Import Substitution under the Committee for Energy of the State Duma discussing legal framework improvement in the field of import substitution. Upon request of the Ministry of Industry and Trade, FGC UES sent an application to host the International Conference on the Development of Cooperation between Russia and ASEAN Member Countries in the Field of Power Engineering in 2017.

As a participant of Import Substitution Technologies and Project, a system of FSBI Russian Energy Agency, the company helps to collect information on the needs for import substitution products. For 2017, it is scheduled to implement the requirements of the Government of the Russian Federation to prioritizing Russian products in procurement.

Among the priorities are the activities aimed at expanding the access to procurement for small and medium businesses. In 2016, the list of goods and services to be purchased from SMEs was extended. The deliberative body for interaction with SMEs continues working. The documents aimed at strengthening communication with SMEs and increasing the share of innovative products were approved.

As compared to the year 2015, the level of procurement from SMEs increased 7.5 times. Every fourth purchase of the company is made from small and medium-sized businesses. The total value of these contracts is over 22 billion rubles.