AI Support Bill Introduced in Russia's State Duma
The proposed legislation would define the sectors where only Russian-developed AI models may be used.
The Russian government has submitted a bill to the State Duma aimed at supporting the development of artificial intelligence technologies. For the first time, the legislation proposes distinguishing large foundation AI models as either sovereign or national, while granting the government authority to designate industries and use cases where only these Russian-developed models may be deployed.
AI Moves Into Statutory Law
The bill introduces a legal definition of artificial intelligence into Russian legislation, establishes government support mechanisms for AI developers, and creates a special legal framework governing the use of copyrighted works for AI training. AI models would also be required to undergo compliance reviews to verify alignment with Russian law and the country's traditional spiritual and moral values. Banks and other financial market participants would be required to coordinate the AI solutions they use with the Bank of Russia.
If enacted, the legislation would give the government a direct mechanism for stimulating demand for domestically developed AI technologies while creating a guaranteed home market for those products. In practice, that would also reduce the risk that Russian users could lose access if foreign AI platforms were withdrawn from the market.
Will the Market Favor Only the Largest Players?
The legislation could significantly reshape Russia's enterprise and public-sector AI market. Russian-developed models may gain an advantage in procurement and deployment across multiple industries, strengthening the resilience of digital infrastructure. The biggest beneficiaries are likely to be companies developing large foundation models that already possess their own computing resources, engineering teams, and infrastructure. Smaller developers, however, could face higher barriers because of the cost of computing capacity and compliance with localization requirements.
The mandatory use of Russian AI models is scheduled to take effect on March 1, 2027. Existing AI systems would be granted a transition period extending until September 1, 2032. Under Russia's National AI Development Strategy, domestic developers are expected to become among the global market leaders by 2030.
From an Ethics Code to Legislation
Russia adopted its AI Code of Ethics in 2021. The document established human-centricity, safety, transparency, and responsible use of AI as its core principles. At that stage, however, the code functioned primarily as a voluntary framework while binding regulatory requirements were still under development. The same year, legislation establishing experimental legal regimes for digital innovation also entered into force.
The year 2023 marked the large-scale emergence of Russian generative AI models. Sber opened public access to GigaChat, while Yandex expanded development of YandexGPT. A year later, Russia updated its National AI Development Strategy through 2030, shifting its focus toward broader deployment of domestic AI technologies. Russian companies are increasingly implementing their own large language models, while the government is putting the legal framework in place to support their use.
Oversight of Compliance
In the coming months, policymakers are expected to finalize the list of sectors where the use of foreign AI models will be restricted. Geographic information systems, financial services, critical infrastructure, and sectors that process sensitive data are likely to be among the first. As noted above, the new framework for domestic AI models is expected to increase demand for Russian-developed solutions, although it could also concentrate the market around the largest developers. Much will also depend on how compliance reviews assessing models against the country's traditional values are implemented. It will be important for the new regulatory framework to preserve opportunities for smaller AI developers rather than creating barriers that limit their ability to compete and grow.
