MOSCOW | Jan 23, 2026 Russia’s largest lender, Sberbank, has acquired a significant stake in leading electronics manufacturer Element, deepening Moscow’s drive to build domestic technology capabilities amid Western sanctions and the ongoing war in Ukraine.
Sberbank said it has purchased a 41.9% stake in Element for 27 billion roubles ($356 million) from private equity firm Sistema and unidentified minority shareholders. All companies involved are subject to Western sanctions linked to the conflict.
The move comes as Russia faces continued restrictions on access to advanced semiconductors and microelectronics, technologies considered vital for both civilian industries and military production. Ukrainian officials have warned that Moscow is increasingly replacing previously smuggled Western components with domestically produced alternatives.
Strategic Asset in Microelectronics
Element is one of Russia’s most important electronics producers, manufacturing integrated circuits, semiconductor devices, and microchips, and accounts for around half of the country’s total microelectronics output, according to industry estimates.
Sberbank said it plans to make a buyout offer to remaining minority shareholders, signalling an intention to consolidate control over the company. Russian business newspaper Kommersant reported that Element’s manufacturing operations will be folded into Sberbank’s technology division, reinforcing the bank’s transformation into a technology conglomerate following its 2020 rebrand as “Sber.”
Potential Clash with State-Owned Rostec
The deal sets the stage for a possible power struggle with Rostec, Russia’s state-owned defence and technology conglomerate, which owns 41.6% of Element and has publicly indicated it has no intention of selling its stake.
Rostec, led by Sergei Chemezov, a longtime associate of President Vladimir Putin, was instrumental in forming Element through the merger of its electronics manufacturing assets with those of Sistema.
The absence of Rostec’s leadership at subsequent high-level meetings has fuelled speculation about tensions between Russia’s financial and defence-industrial power centres.
Putin Emphasises ‘Made in Russia’ Technology
Following the announcement, Sberbank CEO German Gref attended a Kremlin meeting on microelectronics chaired by President Putin, underscoring the political importance of the transaction.
Putin said global powers including the United States, China, and the European Union are prioritising control over critical electronics supply chains, adding that Russia must do the same to secure its future.
“Strengthening military capacity, as well as advances in artificial intelligence and quantum computing, are impossible without a domestic manufacturing base,” Putin said, according to Kremlin remarks. He stressed that both military and civilian sectors should rely on homegrown smart technologies.
