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The 25th International exhibition of security and fire protection equipment and products
19-22 March 2019 • Moscow, Expocentre Fairgrounds, Pavilions 2, 8

Russia’s security market: three opportunities for exporters

The security market in Russia is in a good place at the moment – Russia’s top ten buyers of security equipment and services put out $78.8 million worth of tenders in the first quarter of 2015 alone.

Why? There is a lot the Russian government needs to achieve – protecting fans and participants at the upcoming World Cup, building better facilities and networks for Russia’s security bodies to operate, and improving the country’s poor level of information security. This is great news for international suppliers, as Russian buyers look around the world for the best equipment.
Here are three opportunities for suppliers and exporters:

Safe City programmes in Moscow and nationwide
Many countries around the world have tried to implement unified ‘safe city’ programmes, but they often fall apart at the seams due to a lack of coordination. But the Russian government is not taking any chances with the new Besopasniy Gorod (Safe City) programme, writing it into Russian law with a piece of legislation setting out what needs to be achieved.
The 46-page document sets out a huge number of areas where security will be enhanced, including extra CCTV and video surveillance capacity, control rooms, and systems to transfer, store and analyse huge amounts of information and data. Unifying the large numbers of agencies, facilities and equipment that combines to protect cities is a main priority of the plan, so spending is likely to be big on technology that can centralise security efforts.
This is exciting for suppliers in the industry – but there are also well-established existing programmes at regional level that offer further opportunities. To take one example, Moscow’s Safe City scheme has been running since 2010, with the aim of cutting crime levels in the city, improving fire safety and resistance against natural disasters, and boosting the response levels of Moscow’s emergency services. The amounts being spent on the programme are astonishing – since 2012, yearly spending has swelled at a healthy rate, rising to $300 million per year by 2018 to give a total programme cost of $2.1 billion
What’s more, the civil servants in charge of making the Safe Cities a reality are more than willing to look around the world to supply the programmes. “It’s not our job to give Russian providers requests and orders,” said Alexander Chupriyan, Russia’s Deputy Minister for Emergency Situations. “Our orders will be based on performance goals. Our job is to save lives.”

World Cup 2018
Apart from getting the stadiums built in time, keeping fans, competitors and workers safe is probably the top priority for a sports event. The upcoming football World Cup in Russia is no different, with a huge effort underway ahead of the competition to boost security in all 11 host cities.
Russian state company Sport-Engineering put out an enormous tender this summer for general security equipment at all stadiums being redeveloped ahead of the competition. Stadiums in Kaliningrad, Rostov-on-Don in southern Russian, Samara, Saransk, Volgograd and Ekaterinburg will all be equipped with brand new perimeter security, access control systems for vehicles and staff, security lighting, and secure locations for telecoms and server equipment. Spending just on this tender will total over $12 million. Moscow’s Luzhniki Stadium is also having its CCTV systems replaced at a cost of half a million dollars, while Ekaterinburg will receive a brand new operational command centre, equipped with the latest control room consoles, surveillance, and security communications tech.
Security in Russia is also feeling an indirect benefit from World Cup-related spending in other areas. Officials announced a major programme this month to create a unified IT structure for the competition, and information security will make up a large proportion of the costs. The company managing the project, Rostekh, is assessing where it will need to spend resources on upgrading existing infrastructure, and the total cost of the project will be announced at the end of this year.
If this wasn’t enough to interest providers of security services, Russia’s sports minister Vitaly Mutko recently announced a strengthening of security measures during the competition, at stadiums, fan zones, team bases and around the host cities. "The security plan has already been approved. Taking into consideration the situation in the world, security measures will be intensified,” he said. "We have encountered the problem of security, and examined it in detail. Now the security measures will naturally be strengthened in connection with the circumstances in the world." Mutko also mentioned that he is looking to bring Russia’s matchday security standards into line with those in Europe – good news for exporters who already have experience of supplying security products and services for events in the continent.

Cloud security
As cloud technology makes its way into more and more Russian workplaces and businesses, take-up is enthusiastic – but Russian companies want to make sure they are protected online. A survey commissioned by Russian site Rubezh showed that while half of all companies think the cloud is a risky place to keep their information, this is not stopping the investment in the sector. 31% of all senior managers in Russian IT companies consider developing their cloud capabilities as their number one priority, and a further 36% give security as their number one priority. http://ru-bezh.ru/infografika/pyat-faktov-ob-oblachnyix-texnologiyax . “Despite the economic situation, companies continuing to invest in IT security,” says Sergei Yakovlev, a senior analyst at market intelligence company IDC. “The main driver of this growth is their desire to protect their data, which they store both physically and in the cloud.” Russia has a long way to go to bring its online security infrastructure up to the required standard - in the Economist magazine’s recent study of safety in 50 cities around the world, Moscow ranked fourth-bottom for digital security. http://safecities.economist.com/whitepapers/safe-cities-index-white-paper/
While sales dropped around 8% in the sector last year due to an unpredictable rouble, the Russian currency’s stabilisation makes it more attractive for exporters to capitalise on the clear demand for their products – a demand which is surviving the import squeeze that has hit other industries, according to insiders in the market. “International sellers are continuing to operate on the Russian market – they are not looking to change their plans,” says Fortinet systems engineer Alexey Andriyashin. “The sanctions are not blocking the supply of foreign equipment to Russia.”