---
title: "PCB manufacturers ask the Ministry of Industry and Trade to drop mandatory raw-material localization: switching to domestic materials could raise prices 2–8-fold"
description: "ANo \"PCB Consortium\" (Yadro, GS Group, Rezonit, Tekhnotek) is asking Minpromtorg to remove mandatory raw-material localization from Decree No. 719: switching to domestic materials threatens a 2–8-fold price increase and production disruptions in the peak fourth quarter."
date: 2026-08-25T00:01:33.000Z
lang: en
url: https://xab.info/en/posts/pcb-manufacturers-ask-minpromtorg-to-drop-mandatory-raw-material-localization
tags: [printed-circuit-boards, localization, minpromtorg, electronics-manufacturing, import-substitution, raw-materials, russia]
publisher: "XAB.info"
---

# PCB manufacturers ask the Ministry of Industry and Trade to drop mandatory raw-material localization: switching to domestic materials could raise prices 2–8-fold

![Macro shot of a printed circuit board with chips and components amid the debate on raw material localization in Russia](https://xab.info/media/2026/08/25/proizvoditeli-pechatnyh-plat-prosyat-smyagchit-lokalizaciyu-syrya/proizvoditeli-pechatnyh-plat-prosyat-smyagchit-lokalizaciyu-syrya-1.webp)

## 🎯 Key Points

- ANo "PCB Consortium" sent a letter to Minpromtorg asking to exclude the mandatory use of Russian materials from Decree No. 719 until 3–5 suppliers are available for each critical item.
- Switching to domestic raw materials could increase material costs 2–8-fold and disrupt production in the peak fourth quarter.
- More than 40% of the cost of a printed circuit board is made up of materials; some "domestic" materials are based on imported raw materials, and Chinese equivalents are 40–60% cheaper.
- The industry is recording shipment failures and cases where the declared parameters of raw materials do not match the actual ones according to independent testing.

Russian printed circuit board (PCB) manufacturers have sent a collective letter to the Ministry of Industry and Trade (Minpromtorg) asking it to relax the localization requirements for their products. The document, prepared by the Autonomous Non-Profit Organization "PCB Consortium" — an association that includes Yadro, GS Group, Rezonit, and Tekhnotek — is addressed to Magomed Kurbanov, General Director of the Federal State Budgetary Institution VNIIIR, and Yuri Plyasunov, Director of the Department of Radio Electronics Industry at Minpromtorg. In the letter, which Kommersant cites, the manufacturers point to a systemic shortage of domestic materials and warn that a mandatory switch to Russian raw materials could disrupt production timelines in the industry's peak fourth quarter, while the cost of components could rise two- to eightfold.

### Logistical disruptions and shipment failures

According to the consortium, delays in raw-material supply are caused by sanctions-related restrictions that have disrupted established supply chains. The industry is already recording specific precedents: "shipment failures and deteriorating relations with customers," as the manufacturers themselves put it. A representative of Fplus, a company specializing in electronics production, confirmed that the fourth quarter traditionally accounts for the peak of PCB output, and a shortage of raw materials during this period could trigger a cascading failure of deadlines across the entire supply chain. Producing a single board requires a substrate and dielectric base materials, copper foil, chemistry for copper deposition, and a number of other components, and a shortage of even one of them halts the production line.

### What the manufacturers are proposing: points instead of obligation

ANo KPP (the PCB Consortium) is asking Minpromtorg to remove the mandatory use of Russian materials in PCB production from the new requirements of Government Decree No. 719. Decree No. 719 introduces a points system under which companies earn points for using local components and technological processes; the accumulated score is required to have a product entered into Minpromtorg's registry of domestic radio electronics products. The current draft provides for points to be awarded precisely for the materials and raw materials used. The consortium proposes that, for a transitional period — until "at least three to five raw-material suppliers are available for each critical item" — the use of domestic materials be rewarded with additional rather than mandatory points. In the authors' view, this would avoid derailing production plans while still stimulating the development of a local supplier base.

### Quality and origin of "domestic" materials

In a comment to Kommersant, Olga Kozhukhovskaya, General Director of ANo KPP, emphasized that more than 40% of the cost of a printed circuit board is made up of materials, and that the choice of specific raw materials is often dictated by the customer placing the order. Kozhukhovskaya also pointed to serious quality problems: a significant share of materials marketed as domestic is in fact based on imported raw materials and semi-finished products. Moreover, independent testing has recorded precedents in which the declared parameters of the raw materials do not match the actual ones. Suppliers that allowed such deviations have already been added to the register of unscrupulous suppliers. An Fplus representative added that Russian equivalents, in terms of price-to-quality ratio, do not yet meet modern standards, while Chinese boards and raw materials remain 40–60% cheaper than Russian ones.

### Contradictory figures

Sources disagree on the scale of the price increase. The consortium's letter and Kommersant's materials speak of a two- to eightfold rise in material costs when switching to domestic raw materials. At the same time, in another Kommersant story (a piece on the possible 15–30% price increase for Russian electronics) and in the Fplus representative's assessment, Chinese equivalents are described as only 40–60% cheaper than Russian ones. The difference in the figures is explained by the fact that the "2–8 times" range refers to specific critical raw-material items for which local suppliers are virtually absent, whereas 40–60% is an averaged estimate across the full set of components. Nevertheless, for the end consumer, the final markup on finished electronics could, by industry estimates, amount to 15 to 30%, which makes the issue of raw-material localization not only a production problem but also a pricing one.

### Context: why the issue has flared up now

The discussion of localization requirements for printed circuit boards is taking place against the backdrop of a general tightening of regulatory policy in the radio electronics industry. Decree No. 719 has become one of the key tools for stimulating import substitution: without inclusion in the registry of domestic products, companies lose access to a range of government orders and preferential terms. However, as the manufacturers' letters show, mechanically awarding points for "locality" without regard to the real capabilities of the raw-material base creates the risk that formal compliance with the requirements will be achieved at the expense of degraded product characteristics or higher costs. For an industry in the middle of a peak production cycle, this means a direct threat to competitiveness in the domestic market and a failure to meet obligations to customers.

## 🔍 Fact-Check Verification

- [Russian PCB manufacturers face a raw-material shortage window-new](https://3dnews.ru/1147338/rossiyskie-proizvoditeli-pechatnih-plat-stolknulis-s-nehvatkoy-sirya) - Перепечатка/пересказ материала «Коммерсанта» с подтверждением ключевых фактов: письмо консорциума, нехватка сырья, рост цен.
- [Localization of printed circuit boards proved too expensive](https://www.it-world.ru/it-news/k65csfkah5cc08wscwww8wk8884sock.html) - Независимое освещение той же темы с акцентом на экономическую составляющую и ценовые расхождения.
- [Russian electronics could get 15–30% more expensive: manufacturers call the new ... unworkable](https://3dnews.ru/1139700/rossiyskaya-elektronika-moget-podorogat-na-1530-proizvoditeli-nazvali-nevipolnimimi-novie-trebovaniya-k-lokalizatsii-pechatnih-plat) - Перепечатка/пересказ материала «Коммерсанта» с подтверждением ключевых фактов: письмо консорциума, нехватка сырья, рост цен.
- [The points-system price](https://www.kommersant.ru/doc/8572216) - Первоисточник: письмо АНО КПП в Минпромторг, цитаты Ольги Кожуховской, детали постановления №719, оценка Fplus.

## ❓ FAQ

### Q: What is Government Decree No. 719 and how does it relate to printed circuit boards?
**A:** Decree No. 719 introduces a points system for including products in Minpromtorg's registry of domestic radio electronics products. Points are awarded for using local components and technological processes. For printed circuit boards, the current draft provides for points for the materials and raw materials used, which in effect makes the use of domestic components a mandatory condition for obtaining a registry entry.

### Q: Which companies are members of ANo "PCB Consortium"?
**A:** The consortium includes Yadro, GS Group, Rezonit, and Tekhnotek. It was in their name that the letter asking to relax raw-material localization requirements was sent to Minpromtorg and the Federal State Budgetary Institution VNIIIR.

### Q: How much more expensive are Russian materials compared with Chinese ones?
**A:** According to an Fplus representative, Chinese boards and raw materials are roughly 40–60% cheaper than their Russian equivalents. At the same time, the consortium's letter indicates a possible 2–8-fold cost increase for certain critical raw-material items for which local suppliers are virtually absent when switching to domestic alternatives.

### Q: What compromise are the manufacturers proposing?
**A:** ANo KPP proposes that, for a transitional period — until at least three to five suppliers are available for each critical raw-material item — the use of domestic materials not be made mandatory, and that additional rather than mandatory points be awarded for them under the Decree No. 719 system. This would allow current production to continue without disruption while preserving the incentive to develop a local raw-material base.