On November 27, 2024, at the plenary session of the International Forum-Exhibition «Russian Industrialist», the current results of the implementation of the provisions of the Industrial policy law and the directions for its improvement were summed up based on strategic objectives, including achieving technological leadership.

The meeting was attended by the President of the Russian Union of Industrialists and Entrepreneurs Aleksandr Shokhin, First Deputy Minister of Industry and Trade of the Russian Federation Vasily Osmakov, Member of the Board (Minister) of Industry and Agro-Industrial Complex of the EEC Gohar Barseghyan, Chairman of the Russian Union of Industrialists and Entrepreneurs Committee on Integration, Trade and Customs Policy and WTO, Chairman of the Board of Directors of Severstal PJSC Aleksey Mordashov, Chairman of the Russian Union of Industrialists and Entrepreneurs Commission on Radio Electronics and Electrical Industry, President of BL GROUP Georgy Boos, Vice-Governor of
St. Petersburg Kirill Polyakov, Director of the Industrial Development Fund Roman Petrutsa, Deputy Minister of Industry of the Republic of Belarus Denis Bakey and others.

Valentina Matvienko, Chairman of the Federation Council sent a video message to the forum participants.

According to her, today the domestic industry has become not only the basis of stability, but also a real driver of economic growth in Russia. «The goal of its further development has been very clearly formulated by President Vladimir Putin – to move towards full sovereignty and achieve technological leadership», the Federation Council speaker stressed.

Valentina Matvienko noted that the organizers – the Russian Union of Industrialists and Entrepreneurs, the Ministry of Industry and Trade, and the Government of St. Petersburg – brought together all key representatives of the industry at the forum site: flagships of Russian industry, small and medium – sized businesses, relevant ministries, and scientists. «Those who can offer non-standard solutions for the high-quality breakthrough that reality demands».

The Head of the Federation Council noted the relevance of the forum’s theme – «Industrial policy priorities: technological development and human resources potential», given that the updated national project «Personnel» is about to launch.

The Federation Council speaker also noted that in the face of unprecedented challenges, the Russian business community demonstrates the highest level of patriotism. «Only in this way, working together, shoulder to shoulder, combining the efforts of the state, business, and society, will we be able to achieve solutions to all the challenges facing the country and strengthen Russia’s position as a great world power with a modern economy and a high quality of life for people», Valentina Matvienko said.

Vyacheslav Volodin, Chairman of the State Duma of the Russian Federation, in his greeting to the forum participants, noted that the solution of the issues raised at the Russian Industrialist is related to strengthening the technological sovereignty of our country.

«These are the modernization of production facilities, the introduction of innovative technologies, and the training of professional personnel – important topics for ensuring the sustainable industrial development of our country. You are gathered here at a difficult time of challenges. More than 22,000 illegal sanctions have been imposed against Russia. By initiating them, the United States threatened to stop the development of the Russian Federation, tear our economy to shreds, their plan failed thanks to you. The political system and economic model built by our president are working effectively», Vyacheslav Volodin said.

He added that the proposals put forward at the forum will definitely be considered.

«We will do everything to make them laws, and create an even more effective field for the development of our new industries, technologies and the business community as a whole», the chairman of the State Duma summed up.

In his welcoming speech, Denis Manturov, First Deputy Prime Minister of the Russian Federation, noted that the forum is one of the leading platforms for discussing strategic issues of the country’s industrial development.

«We are on the verge of launching a series of national technology leadership projects. Thus, the state emphasizes the priority role of industry in ensuring the sovereignty of the Russian economy. To enhance the innovative status of its key sectors and improve the quality of life of our citizens. We have something to rely on in this work. In fact, we are entering the second, upper level of reindustrialization. The foundation for this has been laid since the beginning of the century. But the systemic vector for the qualitative renewal of the manufacturing sector was set ten years ago by the law on industrial policy», the First Deputy Prime Minister said.

The active participation of the regions, the scientific and business community, in particular, the Russian Union of Industrialists and Entrepreneurs, in the preparation of the law ensured the subsequent effectiveness of the support measures provided for by it. To date, special investment contracts have provided an influx of 1.8 trillion rubles of investments into the real sector of the economy. In turn, the Industrial Development Fund has financed more than 1,700 projects worth 575 billion rubles.

«All this and much more has given us the opportunity to rhythmically replace imports, withstand covid and present a worthy response to sanctions. Despite external resistance, the manufacturing industry has gained more than 35 % over the past ten years. These solid foundations form the basis for achieving the national goal of technological leadership», Denis Manturov said.

Mikhail Mishustin, Chairman of the Government of the Russian Federation, in his welcoming address to the forum noted that the industrial policy law in the Russian Federation adopted 10 years ago laid the foundation for the creation of effective measures and mechanisms. These include the Industrial Development Fund, which has become a unique support tool, as well as special investment contracts that ensure interaction between the authorities and the business community. Over the years, industrial parks, technoparks and clusters have appeared in different regions, and much has been done to improve the technological level of the real sector of the economy and open modern production facilities, the appeal says.

Aleksandr Shokhin, President of the Russian Union of Industrialists and Entrepreneurs, noted that at the forum it was possible not only to discuss the main directions of industrial policy of a wide range – these are unmanned technologies, personnel training, the development of industrial tourism, and support for high-tech industries, but also to promote solutions to a number of pressing issues.

«This year marks the 10th anniversary of the industrial policy law. It worked both in conditions of economic growth, during the pandemic, and now under severe sanctions, which confirms the flexibility and versatility of the approaches and structures set out in it», Aleksandr Shokhin said.

The result of the law is an improvement in the structure of the economy, the head of the Russian Union of Industrialists and Entrepreneurs added.  Statistics show a steady increase in the share of a number of high-tech sectors in GDP. At the same time, the current situation does not give reason to rest on our laurels, there are a number of issues that require attention.

«Business notes the importance of resuming a number of proven anti-crisis measures, both in terms of investment and revolving loans. Perhaps it is advisable to introduce some of them into the law on industrial policy as measures, the implementation of which begins when certain events occur», Aleksandr Shokhin said.

According to him, multisectoral support measures that ensure demand for Russian high-tech products are of particular importance.

«It is essential to maintain support for export initiatives not only at the federal, but also at the regional level. It is also necessary to effectively use tools to protect against unfair competition – through the support of domestic manufacturers, technical regulation tools», Aleksandr Shokhin said.

Gohar Barseghyan, Minister of Industry and Agro-Industrial Complex of the EEC, stressed that industrial support is one of the key areas within the framework of the Eurasian Economic Commission.

«Our main task is to achieve a leading position in international economic competition. The main strategic goal of the Eurasian Economic Union is to increase the competitiveness of national economies through the development of human capital, as well as the creation of competence centers in priority industries. Such measures will be able to ensure the development of social institutions, create new jobs and achieve higher rates of economic growth», Gohar Barseghyan said.

The Minister also informed about the development of the industrial sector in the EAEU, about the tools to support and stimulate it.

«The union development budget has been formed, which is aimed at creating new regional cooperative chains in industrial production», Gohar Barseghyan explained, noting that a lot of work remains to be done with the participation of the business community. «This is the first time that the Commission has been authorized to provide financial support to promising industrial projects. This is an innovative step in the life of Eurasian integration. I would like to thank Aleksandr Nikolaevich (Shokhin – editor’s note) for his support in making such an important decision to launch interest rate subsidies on loans and borrowings by global financial organizations for the implementation of joint projects from the union budget», the minister added.

She thanked the business community and the Russian Union of Industrialists and Entrepreneurs for their participation in the work of the EAEU Business Council and expressed hope for further successful cooperation. Vasily Osmakov, First Deputy Minister of Industry and Trade of the Russian Federation, spoke about the need for regulatory changes taking into account the current situation.

«Firstly, the related law on industrial PPPs needs to be «tightened» to efficiency so that it works adequately in industry. This will make it possible to implement projects that are unprofitable under current conditions. Secondly, it is the modification of our special investment contracts and linking them with the possibility of providing capital grants from future tax flows, which makes heavy projects more or less payback on the horizon of 10-20 years», Vasily Osmakov explained, adding that in 10 years the industrial policy law has proven its consistency and effectiveness. «The Industrial Policy law has become a platform on the basis of which we develop new measures and adjust existing practices», the Deputy minister concluded.

Kirill Polyakov, Vice-Governor of St. Petersburg, stressed that the region also has an industrial policy document and a regional industrial development fund. In the first six months of 2024, the growth of enterprises’ investments in equity amounted to 26.9 % compared to the same period in 2023.

«The next challenge is to provide the industry with human resources. We are working with special education institutions in this area. I would like to draw your attention to the fact that the final of the All-Russian Championship «Professionals» is also taking place at the Expoforum site today. Last year, we doubled the volume of enrollment in technical specialties», Kirill Polyakov said, emphasizing that the stage of ensuring technological independence is followed by a transition to the stage of technical leadership.

Aleksey Mordashov, Chairman of the Board of Directors of Severstal PJSC, noted that the formation of industrial policy should be open, transparent, clear and effective with the involvement of a wide range of experts.

«The Central Bank’s rate is a very serious challenge for the development of the economy, industry and the implementation of industrial policy», Aleksey Mordashov said.

He is convinced that it is necessary to hold discussions on this topic in order to find out the nature of inflation and how the Central Bank’s key rate can contain it. Despite the high rate, inflation is not slowing down, Aleksey Mordashov believes.

«We have extensive experience of higher inflation, which suggests that the economy can develop in conditions of reasonable, moderate inflation. The Central Bank’s rate today poses the most serious challenges for the development of the national economy, the development of industry, the implementation of our national projects, and economic growth», he added. According to him, the Ministry of Industry and Trade and the Ministry of Economic Development are trying to support industries and enterprises in the face of tight monetary policy. At the same time, he noted the need for such support for the survival and implementation of national projects, but warned that this may not be effective enough if macroeconomic parameters are not taken into account.

Georgy Boos, Chairman of the Russian Union of Industrialists and Entrepreneurs Commission on Radioelectronic and Electrical Industry, President of BL GROUP, drew attention to the difficulties of implementing the industrial policy law.

«When the law is implemented, the effect of a downed pilot occurs, since declarations are not executed. It is necessary for the state to include a mechanism for monitoring the implementation of its own decisions», Georgy Boos said, adding that the taxation system sets the rules of the game.

It manages both cash flows and the interests of entrepreneurs to invest money in one area or another. Roman Petrutsa, Director of the Industrial Development Fund, spoke about the successful financing of 1,750 projects worth 575 billion rubles over the 10 years of the FER’s operation.

«The secret of the success of the projects is that the FER is funded at a low interest rate, fixing it for the entire duration of the project, and marketing it clearly», Roman Petrutsa said, adding that today less than 1 % of the projects from the total amount of funds provided are in the claim process.

Denis Bakey, Deputy Minister of Industry of the Republic of Belarus, noted that more than 10,000 Belarusian and Russian enterprises are linked by industrial cooperation, carrying out mutual supplies of raw materials and components, which is an indisputable confirmation of mutual interest in the further joint development of the industrial sectors of the two countries.

«The main task of government representatives within the Union State is to create and maintain favorable business conditions in the market of our integration association. The legal basis for our cooperation is the agreement signed in February 2023 between the governments of Belarus and Russia on a common industrial policy. In accordance with Decree No. 3, we have agreed on equal recognition of components manufactured in the territories of our countries», Denis Bakey said. According to him, work has been carried out on the harmonization of legislation regulating the production of products in the territories of the parties.

At the end of the meeting, it was noted that, contrary to expectations and negative forecasts about the structural transformation of the Russian economy and a prolonged severe recession, the transformation really took place in terms of the adaptation and mobilization of the economy, and above all its industrial sector. An important role in this was played by active support measures, as well as proactive actions taken 10 years ago, in the form of Law No. 488-FZ «On Industrial Policy of the Russian Federation», import substitution plans in key industries, as well as the creation of development institutions to support industrial enterprises and ensure technological leadership.

The International Forum-Exhibition «Russian Industrialist 2024» takes place on November 26-28 in
St. Petersburg, at the Expoforum Convention and Exhibition Centre. Russian Industrialist is the largest international discussion platform in Russia for analyzing trends in the development of the industrial complex, determining the main directions of economic growth and finding optimal solutions to overcome existing challenges. This year, the key tracks of the forum were: industrial development prospects, technological sovereignty, customer orientation, workers and engineers, young industrialists and entrepreneurs, open industry, international cooperation.