Expert opinions, INVESTMENT CLIMATE

Import substitution in action: how industrial construction forms the framework of the Russian economy

Autumn 2025 has become a landmark period for the Russian industry. Despite the general “cooling” recorded by experts in the construction industry, the industrial construction sector is showing dynamic growth, confirming the success of the import substitution policy. The launch of dozens of new industries in the regions creates an important reserve for long-term sustainable economic growth, gradually reducing dependence on external supplies not only in raw materials, but also in high-tech segments.

Photo: Workers in the workshop for the production of import-substituting cables for the oil and gas industry, construction and shipbuilding. Evgeny Biyatov/RIA Novosti

Q3 2025 trends: optimism amid structural shifts

The current situation reveals several key trends characterizing the state of industrial construction.

Regionalization for supply chain sustainability. New production facilities are increasingly being opened in the immediate vicinity of the raw material base or key consumers. For example, the launch in September on Sakhalin of a gas turbine repair shop for oil and gas companies in the Far East, that reduces logistics costs and service terms. This trend is a direct consequence of the course towards creating a self-sufficient regional economy.

The cost of construction is stabilizing. According to reports, inflation in the construction industry is declining. This gives market participants more certainty in planning. Despite the general slowdown in inflation, there is a shortage in some categories of building materials and prices continue to rise. For example, concrete and reinforced concrete, ceiling systems.

The industry focuses on innovation and increasing recycling depth. State support through the Industrial Development Fund (IDF) and concessional lending programs stimulates the launch of high-tech enterprises. In August, Rosatom in Mordovia launched Russia’s largest composites production line with a capacity of up to 3,900 tons per year. In September, a plant for the production of valves was opened in the Kamchatka Territory, which will almost completely cover the needs of the region. The plant uses domestic raw materials.

New industrial enterprises as an investment in the future

In the 3rd quarter of 2025, many significant industries were launched throughout the country. The energy of growth is demonstrated by a variety of regions. So, in Ruzayevka, Mordovia, the second stage of the cluster “Center for Polymer Composites” of Rosatom was launched. This is the largest production of composites in Russia for construction, transport, energy with a capacity of 3900 tons per year. Investments amounted to more than 1 billion rubles.

In Kstovo, Nizhny Novgorod region, a plant for the production of all-terrain vehicles “Zvezda” was opened, producing floating all-terrain vehicles and buses.

In Serpukhov, Moscow Region, a turbocharger plant for UAZ, GAZ, PAZ cars with a localization level of more than 80% was launched.

In Sysert, Sverdlovsk region, the Teplit plant for the production of aerated concrete was launched. This is the third enterprise of the holding, it specializes in the production of wall blocks from autoclave aerated concrete. Investments in the launch amounted to 3.5 billion rubles.

In Tyumen, Group of Companies “OFS Technologies” invested 7 billion rubles in the opening of a plant for the production of rotary-controlled systems, this is equipment for hard-to-recover hydrocarbon reserves.

In Serdobsk, Penza region, the Spetsmash Serdobsk plant has been launched, which will manufacture mobile gas stations and electric charging stations.

Q4 2025 plans

The industrial agenda promises to remain intense until the end of 2025. The stage of active preparation for the launch or final implementation includes projects announced earlier. For example, in the Smolensk region, the construction of a plant for the production of aerosol cylinders by the Rumopak company is nearing completion. After reaching its design capacity, the enterprise will produce up to 288 million units of production per year.

In Vyazma, Smolensk region, BIENGI Compounds plans to expand its pilot production line for the production of non-combustible polymer compounds.

Forecast for 2026

Industry experts and government officials agree that industry growth rates will continue in 2026. Among the main factors in the development of the Russian industrial complex in 2026 there are the implementation of national projects for technological leadership and an increase in the availability of financing, along with a continuing decrease in the key interest rate, the industrial mortgage program and concessional loans of the Industrial Development Fund.

The shortage of qualified workers and engineers remains one of the main challenges, for its solution programs like “Professionalism” and the opening of engineering schools are already being implemented.

It can be noted that the market for industrial construction in Russia is undergoing a stage of restructuring. Instead of “overheating,” we observe targeted development, where priority is given not to voluminous, but to technological and strategically important projects that lay the foundation for the economy of the future.

By Alexey Bravin, CEO of G5 Architects

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