This blog takes a closer look at the dramatic rise in optical fiber prices from Chinese suppliers to Russia in 2026. Demand has shot up—military use is a big part of it—while supplier terms keep tightening.
Russia now leans heavily on imports after its only domestic producer stopped operations due to drone attacks. This shift is already affecting Russia’s telecom infrastructure, project budgets, and the broader optics market.
Price trajectory and drivers
The price for the popular G.652D optical fiber climbed fast in 2025–2026. It jumped from around $2.33 per kilometer in early 2025 to $3.60 by year’s end, then hit $5.80 in January 2026.
Rising demand and stricter supplier terms both played a role. China-based suppliers now often insist on full prepayment from Russian buyers. Russia’s sudden switch from domestic production to imports, after its only producer shut down, made the shock even worse.
Market dynamics: demand and supply shocks
Russia’s share of global optical-fiber consumption soared to about 10.5% in 2025. That’s a huge leap, with nearly 60 million kilometers of fiber bought that year.
Military needs are a big factor. Fiber links for drone control—sometimes up to 50 kilometers—have pushed demand well beyond what civilian telecom usually needs.
Prices now swing in a range that’s 2.5x to 4x higher than before, from early 2025 through January 2026. It’s a market under pressure, with supply tight and geopolitics making things even trickier.
Implications for Russia’s telecom sector
Sudden price hikes and tougher payment terms are forcing major Russian buyers to rethink how they source fiber. Industry execs say full prepayment is the norm from Chinese suppliers, which means more cash up front and tougher project financing.
That extra cost will likely show up in telecommunications infrastructure budgets and service prices, making upgrades and new projects harder to pull off.
Supply chain vulnerability and procurement shifts
- Big buyers are scrambling to review suppliers and tweak terms to manage risk.
- Prepayment requirements tie up cash with suppliers and could limit fiber access for large projects.
- When Optical Fiber Systems in Saransk shut down after spring 2025 drone attacks, Russia’s import dependence grew, leaving it exposed to market swings and sanctions.
Policy implications and resilience planning
Some observers warn that this mix—import dependence, wartime demand, and tough supplier terms—might reshape Russia’s communications capabilities and shake up global fiber pricing for a while.
To build some resilience, policymakers and industry folks might try to diversify suppliers, boost local production where possible, or set up contingency plans—think strategic stockpiles, different fiber types, or more modular upgrades that don’t rely on just one source.
Outlook for the optics market and recommendations
In the near term, fiber prices will likely stay high. Demand just isn’t letting up, and supply keeps running tight.
International suppliers might stand out if they offer more transparent pricing or flexible payment options. That’s something buyers are probably looking for.
For Russia, it’s time to move away from relying on just one source. Building up a more resilient ICT backbone seems crucial if they want to avoid future disruptions and sudden cost hikes.
It’s smart to keep an eye on trade flows and geopolitical tensions. Watching domestic production capacity could help forecast where prices are headed and guide procurement risk decisions.
Here is the source article for this story: Chinese Suppliers Hike Optical Fiber Prices for Russia by 2.5–4x