MIL OSI Translation. Region: Russian Federation –
Source: Government of the Russian Federation – An important disclaimer is located at the bottom of this article.
A plenary session of the congress of the Russian Union of Industrialists and Entrepreneurs (RSPP) was chaired by Russian President Vladimir Putin. The report was made by Deputy Prime Minister – Minister of Industry and Trade Denis Manturov.
Welcoming the participants of the plenary session, Vladimir Putin noted the work of the RSPP: “The RSPP always has its own clear, balanced, as a rule, position and specific proposals on how to make national development more sustainable and dynamic, so that this development leads not only to increasing the competitiveness of our economy, but also to improve the quality of life of citizens and increase the income of Russian families. I hope that today, during the planned discussion, we will definitely discuss tasks that require joint efforts of the state, society and business.”
As Vladimir Putin said, at the end of 2023, Russia’s GDP increased by 3.6%, and in the first two months of this year the figure grew by an average of 6%. At the same time, industrial production also shows growth: in January – February 2024 – by 6.6%. Also, in the first two months of this year, retail trade turnover was 10.7% higher compared to 2023.
During his speech, Vladimir Putin outlined the main tasks for improving the investment climate and achieving technological independence.
“In the next six years, we need to radically increase the volume of industrial production by tens of percent. Moreover, new enterprises, including high-tech ones, in critical areas, should appear literally everywhere. Companies that implement individual projects, regardless of the region of presence, can already use special support measures – the so-called industrial menu, choose agreements on the protection and promotion of capital investments, special investment contracts, a cluster investment platform, and so on. We will expand these business opportunities, including directing additional resources to the development of industrial mortgages, and additional capitalization of such a significant, in-demand mechanism as the Industrial Development Fund. Its capital will almost double – by 300 billion rubles. This resource will be aimed at supporting high-tech projects. And of course, it is necessary, as they say, to monitor the effectiveness of these and other tools online, fine-tune them, make them more flexible and convenient based on feedback from business and regional leaders,” he said.
Vladimir Putin indicated that by 2030 it is necessary to increase the volume of domestic expenditures on R&D to at least 2% of GDP. Moreover, private business investments are expected to become the driving force – their volume should at least double.
In addition, Russian President Vladimir Putin noted the need to ensure an influx of qualified personnel into the economy, ready to master new production and management technologies.
“We need to unlock this colossal potential of Russia, give our talented scientists, engineers, entrepreneurs, and workers the opportunity to fully express themselves,” he noted.
During the report, Deputy Prime Minister and Head of the Ministry of Industry and Trade Denis Manturov spoke about the development of public-private partnerships in order to achieve technological sovereignty. Despite growing external pressure, he noted, production has increased in almost all sectors of the manufacturing industry. The volume of investments in fixed capital set a record; at the end of 2023, their growth in processing exceeded 19%, which reflects the active involvement of enterprises in technological sovereignty projects.
“From this rostrum I would like to thank industrial business for its responsible, painstaking work in the difficult conditions of sanctions, volatility of the national currency exchange rate, targeted increases in the fiscal burden and increased rates of the Central Bank. These costs are dictated by the special moment our country is going through. And everyone here understands perfectly well the reasons for the Government’s adoption of certain temporary decisions. This balancing of priorities and capabilities allows you to concentrate resources on the most important areas. Not by sequestering, but, on the contrary, by increasing the volume of state support for them,” emphasized the Deputy Prime Minister and Head of the Ministry of Industry and Trade.
In particular, last year the state allocated more than 145 billion rubles for R&D; the Industrial Development Fund issued 276 preferential loans for a total of 142.5 billion rubles. Over the 10 years of operation, the IDF has supported the implementation of almost 1.6 thousand projects worth 525 billion rubles.
“Taking into account the President’s instructions on the rhythmic recapitalization of the fund, there is no doubt that its weight among development institutions will only continue to grow,” said Denis Manturov.
The mechanism of special investment contracts also remains in demand – last year 15 SPICs were concluded for 415 billion rubles. A twice as large influx of funds into the industrial sector is expected due to the already selected projects of the cluster investment platform; today there are 38 of them for 810 billion rubles.
“In addition to the designated system-wide tools, we have a wide range of purely industry-specific support mechanisms. They partially compensate for the key rate. And demand programs allow you to respond flexibly to price fluctuations, smoothing out the impact of inflation on the business climate,” noted the Deputy Prime Minister and Head of the Ministry of Industry and Trade.
Denis Manturov noted the role of small and medium-sized businesses in the implementation of technological sovereignty projects. A striking example was industrial mortgages.
“Users of promipoteka are predominantly SMEs – this is 82.5% of loans. In total, more than 830 preferential loans were issued under this instrument. And this made it possible to involve about 4 million square meters into economic turnover. m of industrial real estate. In general, preferential programs ensured accelerated growth in lending to small and medium-sized businesses. Last year, the rate was about 40% amid a decline in the already minimal share of overdue payments. That is, SMEs feel quite stable and are ready to expand their participation in industrial cooperation projects. Thus, over the past two years, we have created conditions for replenishing the missing links in production chains,” said Denis Manturov.
During his speech, the Deputy Prime Minister also noted a list of structural limitations to growth, the overcoming of which requires special emphasis. Among them are the lack of domestic technological equipment, the expansion of basic chains from raw materials to final products in small- and medium-tonnage chemicals, and the lack of personnel in industrial sectors.
Note; This information is raw content directly from the source of the information. This is exactly what the source states and does not reflect the position of MIL-OSI or its clients.
Please note; This information is raw content directly from the information source. It is accurate to what the source is stating and does not reflect the position of MIL-OSI or its clients.
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.
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