Russia’s only domestic optical-fiber plant in Saransk has been offline since May 2025 after Ukrainian strikes. This forced a shift to imports from China and set off price and supply pressures for Russian cable makers and telecom operators.
These developments sit against a backdrop of growing demand for optical fiber. AI infrastructure, data networks, and military needs are all pushing up demand, with real implications for pricing, project timing, and national resilience.
Current state of Russia’s optical-fiber supply chain
Before the shutdown, the Saransk facility produced about 4 million kilometers of optical fiber each year. It supplied roughly 20 Russian cable makers.
With the plant offline, Russia now fully depends on imports from China for optical fiber. Since early 2026, Chinese suppliers have hiked prices for Russian buyers, with G.652D fiber jumping from 16 yuan/km in early 2025 to around 40 yuan/km by January 2026.
This surge comes from rapid demand growth, including military use of fiber to control drones at distances up to 50 km. The fiber’s resilience to electronic jamming is critical in these applications.
In 2025, Russia made up about 10.5% of global optical-fiber consumption, buying nearly 60 million kilometers. A worldwide shortage, driven by AI infrastructure and expanding data networks, has made supply even tighter.
Procurement costs are rising. Suppliers now often demand full prepayment, putting extra financial strain on Russian cable makers before price hikes reach end users.
Key metrics at a glance
Russia’s reliance on a single domestic producer has left it vulnerable. The sudden shift to imports and the sharp price jump for standard defense- and telecom-grade fiber have shaken up the market.
External shocks like conflict-related disruptions, combined with global demand growth, have changed the cost and risk outlook for Russian network builders.
Demand dynamics and price pressures
The pressure on optical-fiber demand comes from two main directions. First, military applications—like drone command and control—keep fiber usage high and strain supply.
Second, the global push for more AI infrastructure and data networks has created a persistent shortage. Competition for fiber is fierce, and prices are all over the place.
Suppliers now focus more on cash flow and risk, making prepayment the norm. This shift in credit terms adds a real financial barrier for Russian cable makers trying to buy imports.
They’re already bracing for higher domestic prices for finished cables and services.
Military and civilian demand drivers
Optical fiber serves both defense and civilian networks. Demand comes from long-haul and core backbone links needed for data-heavy applications.
The geopolitical context makes reliable fiber supply chains even more important. Political and logistical disruptions are real risks, especially when performance standards for sensitive missions are on the line.
Market implications and supply risk
Executives warn that availability—not just price—is the biggest risk right now. With the Saransk plant still offline and imports the only option, Russian cable makers are likely to pass higher input costs on to customers.
This could affect dark-fiber leasing and long-distance network construction, since fiber procurement costs hit capex planning and project schedules directly.
Russia’s share of global fiber consumption, combined with the worldwide shortage, points to a tightening market. Operators might need to rethink procurement, hunt for new suppliers, or speed up diversification to handle future shocks.
Economic impact on operators
- Higher total project costs as fiber prices climb.
- Possible delays in long-haul and backbone network builds, since prepayment and procurement headaches slow things down.
- Rising tariffs or price hikes for customers in both municipal and enterprise networks.
- More focus on building stockpiles or using multiple suppliers to avoid single-point failures.
Strategic responses and policy considerations
To reduce ongoing vulnerability, manufacturers and policymakers should look at expanding domestic capacity and finding supply options beyond just one Asian supplier. Joint ventures, modernizing fiber production equipment, and incentives for domestic value-add in the fiber ecosystem could help cut exposure to external shocks and geopolitical risk.
In the short term, better stock management, longer procurement contracts with favorable terms, and closer coordination between operators and suppliers might help keep availability stable. These steps could also protect project timelines as prices adjust to the new normal.
Strategies for resilience
- Develop and support alternative suppliers to avoid relying on a single country.
- Invest in domestic fiber manufacturing, modernization, and a skilled workforce.
- Build up strategic inventories of key fiber types (like G.652D) to weather short-term disruptions.
- Use risk-based procurement planning and longer-term contracts with fixed or capped pricing where possible.
Conclusion
The shutdown of Russia’s only domestic optical-fiber plant in Saransk really shows just how fragile supply chains can be, especially in a market that’s always in high demand and full of geopolitical tension.
With global demand for AI and data networks still climbing, and defense applications keeping fiber use steady, it’s clear that Russia needs to diversify, boost domestic manufacturing, and get ahead of risks if they want to keep their communications backbone strong and costs under control.
Here is the source article for this story: Russia Forced to Rely on Chinese Optical Fiber Imports After Ukrainian Strikes Halt Domestic Plant