Up to 40% of Russia’s utility networks are worn out, rising to nearly 80% in some regions, according to data released by the construction ministry on March 19. The government spends roughly RUB 100 billion a year on infrastructure upgrades. Yet even maintaining current performance levels now requires a step change in pace rather than incremental progress. The challenge is not just funding. The sector also faces a severe labour shortage, estimated at 150,000–160,000 workers, underscoring the need to raise productivity through technological modernisation.
Russia’s construction ministry has warned that utility networks are in a critical state of disrepair. Speaking at a national forum on technology, equipment and productivity in the utilities sector, minister Irek Faizullin said about 40% of networks now need replacing.
In some regions, the level of deterioration is as high as 80%, Faizullin added.
Over the past seven years, RUB 743 billion in federal funding has been channelled into upgrading utility infrastructure nationwide. ‘Thanks to the government’s systematic efforts, the number of major incidents has been declining year on year,’ Faizullin said, adding, however, that the overall figure remains ‘fairly high’.
Alongside constrained investment and the relentless pressure of time, with upgrades failing to keep pace with deterioration, the utilities sector faces another critical challenge: labour shortages. The construction ministry estimates the current shortfall at 150,000–160,000 workers.
Addressing these challenges will require more than just adequate funding; it also demands higher efficiency and stronger labour productivity across the sector
The ministry estimates that a productivity drive in the utilities sector through to 2030 could cut network incidents by 11.5%, offset a workforce shortfall of around 60,000, improve service quality and, in a best-case scenario, help contain tariff growth.
The programme outlines four key levers to raise productivity. The first is process optimisation, which is expected to lift labour productivity by more than 4%.
The second lever is the rollout of standardised, off-the-shelf solutions based on best practice, expected to deliver a further 5% productivity gain. The programme also includes systemic measures under state programmes and national projects: productivity in district heating is projected to rise by 9%, and by nearly 7% in other segments. Finally, it places emphasis on training and workforce development, with a modest additional impact of around 0.3%.
Speaking at the same industry forum a day earlier, Deputy Minister of Construction Alexey Eresko said the sector is targeting nearly 16% productivity growth by 2030. The goal is achievable ‘only with large-scale technological modernisation’, he added.
Priority is therefore shifting to the deployment of smart specialised equipment, robotic systems and digital management platforms.
This applies across the entire service chain, from earthworks for replacing ageing infrastructure or laying new utility lines to maintaining streets and courtyards and handling waste collection. It ranges from smart excavators and remotely operated loader tractors, including electric models, to robotic snowploughs and electric refuse trucks.
The approach is backed by domestic manufacturers. At the same forum, participants from the Chuvash Republic’s mechanical engineering cluster presented an electrification roadmap for urban utility equipment, developed with Russia’s domestic component base in mind
The roadmap sets out which types of machinery are best suited for electrification and how they can be integrated into charging infrastructure.
The concept spans three categories of equipment: utilities, warehouse operations and construction sites. It aims to reduce reliance on conventional fuels, cut operating costs and optimise staffing levels.
According to Grigory Bolotin, chairman of the board at engineering company Apriornye Resheniya Mashin, productivity in the utilities sector could outpace official targets if efforts focus on three key areas.
First, automation, including the use of electronic control systems and telematics. Second, the development and deployment of purpose-built municipal equipment.
At present, Bolotin told Nezavisimaya Gazeta, the utilities sector often relies on general-purpose agricultural tractors and skid-steer loaders, equipment more commonly used in construction, to handle a wide range of tasks. Experts say productivity would be higher if operators instead used machinery specifically designed for individual utility functions.
Third, the sector needs to shift to specialised IT platforms, including autonomous systems, to enable more effective planning, coordination and oversight of work carried out with modern equipment.
Such initiatives are entirely feasible beyond the capital region, Bolotin said. ‘If a group of cities, large, medium and small, across different climate zones, is selected to pilot and refine operational models using new equipment, these practices can then be rapidly scaled nationwide.’ The key requirements, he added, are ‘political will, clear goals and a project-based approach.’
Origin: NG/Жилищно-коммунальное хозяйство хотят “перевооружить”
