Sberbank Takes Major Stake in Element Amid Russia's Tech Sovereignty Push

Sberbank acquires a 41.9% stake in electronics firm Element, driving Russia's tech sovereignty amid Western sanctions. A potential clash with Rostec, a state-owned defense entity owning a similar stake, looms as Moscow pushes for domestic military tech. CEO Gref participated in a related Kremlin meeting.

Sberbank, Russia's leading bank turned tech giant, has acquired a significant 41.9% stake in prominent electronics manufacturer Element. This move aligns with Moscow's strategy to fortify sovereignty in producing high-tech components crucial for the ongoing conflict in Ukraine.

Amid Western restrictions on critical technologies like semiconductors, Sberbank's acquisition signals Russia's growing capability to replace smuggled Western components with domestic technology. The deal, priced at 27 billion roubles, positions Sberbank for a potential clash with state-controlled defense and technology conglomerate Rostec, which holds a similar stake in Element.

Element, a major player in Russia's microelectronics production, may integrate its assets with Sberbank's tech division. This development coincides with enhanced scrutiny from Ukraine on Russian tech imports, highlighted by President Volodymyr Zelenskiy's remarks at the World Economic Forum. In a Kremlin-led meeting, Sberbank CEO German Gref emphasized the importance of a homegrown manufacturing base for Russia's military and technological advancements.

(With inputs from agencies.)