“The decision on trade in alcohol in the Internet will be made...

“The decision on trade in alcohol in the Internet will be made in 2017”

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Online stores allowed to sell alcoholic beverages after the development of monitoring mechanisms

Photo: RIA NOVOSTI/Maksim Blinov

On measures to support Russian industry in the new year, an additional package of solutions to increase demand for domestic products, forecast the index of industrial production by 2017, support staff offices and industrial enterprises through the provision of apartments, and about when will be permitted to trade alcohol on the Internet, has told in interview to the correspondent of “Izvestia” Victor Jirovu Minister of industry and trade of the Russian Federation Denis Manturov.

If you managed to negotiate with the MOF for funding in 2017 in the desired quantity?

— All areas along the line of the Ministry of industry in 2017 we agreed with the Ministry of Finance. Colleagues supported us. I do not remember a single year when we had not found a compromise solution, which, on the one hand, provides support for the industry, and with another — provides the development. Well, for some projects this development continues.

In addition to funds provided for support industries in the Federal budget, there are also separate decisions of the President and the Prime Minister regarding additional support to demand, for example, vehicles, machinery and other industries.

The budget is divided into several components. First, the development budget in R & d (research and development work. — “News”) on the broad direction of the industry. The second area is compensation of expenses for interest for the creation and modernisation of facilities. The third is the promotion of products for compensation for discounts. The latter applies both to domestic demand and separate solution packages for export, which was adopted by the government for a period of three years and confirmed for 2017. The support measures apply to the payment of interest on loans, and part of the cost that enterprises bear for the delivery of its products in parts logistics.

The new measure, which we tried on the automotive industry and agricultural engineering — certification and homologation of products which will be exported to foreign markets of those countries where expose individual requirements. This measure will now be extended to other industries. In General I can say that we satisfy the queries that were there in the industrial enterprises of those industries where there is a need for government support.

— How much money will be allocated for the development and support of industry in the next year?

— As for the budget, limits will be about 250 billion rubles. This is what I’m told — where is the component of R & d and modernization. Also planned, a separate package of solutions in the amount of 107.5 billion rubles, which will be taken in 2017. Here we are talking just about additional support for the demand by industry — in the first place is the car industry, agricultural machinery, road construction machinery and light industry.

A separate measure introduced in 2016, is to compensate the discount that businesses provide on the pilot batches for the consumers in the framework of import substitution — this applies primarily to investment engineering.

These measures apply to products which are only entering the market, and here we also take into account the interests of consumers. This is a new mechanism that will be used for pilot batches, and then the products will be implemented on market terms. That is the main purpose of the grant is to help make the first step into the market.

— When the final decision on the allocation of additional funds in the amount of 100 billion rubles?

— The final decision has been made. You just need to wait for the act government, which will provide these activities.

— How to change the amount of support in comparison with the year 2016?

— Changes will be insignificant, the funds will almost remain at the level of 2016. But, as practice showed, during the year, still there is some correction. We redistribute the funds somewhere inside programs, where-that we move funds between them. This process always happens quickly, here the government is going to meet us.

— What is the forecast of the Ministry for industrial production in 2016 and 2017?

— As for the index of industrial production, here, we agree with the opinion of experts and the Ministry of economic development is that in 2016 will be about 0.5% growth. As for manufacturing industries — there is expected a significant improvement compared to year 2015 (in 2015 — 94.6% of the forecast for 2016 year — 99,6%). This is a good result taking into account the adopted support measures. Moreover, the General decline in processing was mainly due to metallurgy and cars that seriously affect the overall indicators.

In 2017, I’m sure the treatment we will have a plus. Afraid to think, but according to our assumptions will increase from 1% to 2% based on price index (a measure of demand for the products of investment engineering), which grows from July. Now the index is at 54%, which allows us to expect at the end of 2017, optimistic scenario, if there will be no economic collapse.

Overall I think next year we’ll be close to the common indicators on industrial production at the level of 1.1–1.6 percent.

— After the beginning of the program of import substitution in which sectors do you see the greatest potential?

Is, in particular, pharmaceuticals. We started this industry back in late 2007 and have actively pursued since 2009. All planned activities (strategies, programs) are implemented and give the fruits that we see. The results of the December 2016 we have reached the figure of more than 76% list of essential drugs (EDL) in Russia is more than 500 international non-proprietary names of drugs. We believe that by 2018, we should reach 90% of the essential drugs list, what is absolutely real.

Be sure to say that we are well advanced in civil aviation and shipbuilding, electronics. In oil and gas engineering we have just a huge leap. This year at the gas forum in St. Petersburg, we together with Alexei Miller (Chairman of the Board of PJSC “Gazprom”. — “News”) and Viktor Alekseyevich Zubkov (special representative of the President of Russia on interaction with the Forum Stan — exporters of gas. — “News”) held item, which today has replaced our company — we go with a substantial advance at the expense of teamwork, producers, consumers, science. Only a comprehensive approach to all aspects of the plan on import substitution made it possible to achieve such results.

Also of note is the agricultural machinery sector, where for the last three years for grain and forage harvesters, attachments and equipment power machinery — tractors — in 2016 was an increase of 68%. This is an unprecedented result: we have closed more than 50% of the market with their appliances. This has never happened before. We started with a market share of 18% in 2007-2008, and today they already held 54%.

All industries show positive trend except, unfortunately, the auto industry. In 2016 there will still decrease compared to the year 2015 in the range of 9-10%. The entire auto industry going down, of course, passenger transport or minus 11%. And if you take the segment of trucks, buses and light commercial vehicles, all of them substantial plus. In particular, buses recorded an increase of more than 14% according to the results of 2016. But if we are talking about the market and the total volume of production (given the fact that we want to go in 2016 to 1.3 million units) is, of course, passenger transport hundreds of thousands, and it significantly affects the overall performance.

At the same time, it should be noted, are increasingly used Russian components and automotive components, ranging from materials to parts and assemblies. The engine pulls and the chemical industry — polymers and plastics, as well as the skin.

So, for example, is now actively developing a leather factory in Ryazan — taking into account the modernization and launch of new directions by providing a soft loan from the industrial development Fund. The plant was also offset by interest on the “current assets” (loans for working capital. — “News”), and the motor vehicle industry and aircraft industry made the task orders. A number of airlines, particularly S7, buy Russian skin for the interior of the aircraft. Development contributes to the special decision of the government to ban the export of raw hides, because we have a deficit of raw materials. In General, in 2016 the volume of production of leather increased by 6%.

— What measures of support of export of Russian metallurgical products are being considered?

— Regarding export support, I can say that in the deep stages we are really ready to support steel products, where a significant added value. It’s all those measures which are currently “sewn” to the project of the program “Industrial cooperation” and dealt with the Russian export centre.

In addition, our function is to give impetus to import-substituting and export-oriented projects aimed at creating added value in Russia. That is not to be limited to the role of supplier of resources, and to build the industrial chain of the full cycle — from raw material preparation to production of final products. In this logic, the industry development Fund has already financed the creation of 16 new productions in the field of metallurgy and metalwork in the amount of 3.6 billion rubles.

In addition to financial, there are also administrative measures — promotion of the products of our enterprises, including metallurgical, through participation in the intergovernmental commissions, trade missions and business missions. Therefore, steelmakers can count on all support measures that are addressed to a wide range of industries in the field of deep processing with high added value.

— At what stage is the processing of state subsidies for “Mechel”?

— Subsidies. This refers to the provision of soft loans from the industry development Fund that is requested by the company. One loan in the amount of 255 million rubles, they have already received for Beloretsk metallurgical plant, which is part of “Mechel”. Also applied for the second loan, and is considered the Foundation.

This implies expanding the range of rail products at Chelyabinsk metallurgical plant. If the application will meet the criteria and objectives of the Fund, it will be considered by the expert Council of the Fund. We are talking about the soft loan under 5% at the maximum for FRP — 300 million rubles.

— Your office was involved in writing the strategy for the development of electronic Commerce. What result do you expect, what you want to achieve in this area?

We have been actively seized of the matter, because e-trade has a tendency to substantial annual growth in 2016, in Russia it amounted to 30% by 2015.

In this case, we do not separate domestic e-Commerce. We prepare a comprehensive document for the two directions. Our task in the development of the export of electronic facilities is to increase by 2018 the number of participants of this trade until at least 5 thousand Now it is as at least 150 companies, but next year we aim to double and then multiple to increase this number using the REC through all available mechanisms, which are already included. Of course, these are mostly small and medium-sized enterprises.

With these companies we need to build a normal operational mode of interaction that they did not knock on the closed door and knew how and what tools you can use. To do this, REC will create a network of territorial agencies in the country.

On the basis of international experience it is planned to create in the country an extensive network of territorial subdivisions of the export Department, which would provide a one-stop-shop for companies.

— In December, Deputy Prime Minister Igor Shuvalov held a meeting on privatization. What are your Ministry’s plans in this program?

I can’t say that we have a wide range of enterprises in 2017. Mass the stage of alienation and privatization has already been implemented in previous years. All this occurred against the background of developing a global integrated structures, in particular the state Corporation “rostec”, which included a huge number of companies — in my memory there were more than 600. In the future we will continue the consolidation of the integrated structures, including the will to contribute to the assets of rostec. However, while nothing global in the new year from our side is not planned.

As for the property not used by our subordinated Federal state unitary enterprises, there is an agreement with the Corporation of the seller: this property we will tell them that they have already used it in business. We are talking either directly about the premises and lands for the construction of residential complexes or on the use of funds from the sale of property for the purchase of apartments for the employees of our companies, our agencies and colleagues from other departments. Here we use their ability to motivate employees and departments the provision of flats somewhere in a service housing, somewhere in the property.

— What steps your Agency is considering in terms of control over the circulation of ethyl alcohol in connection with the recent poisoning in Irkutsk?

— Now there are four companies that belong to our Department and to produce alcohol for medicinal purposes. They are all private. At the time it was accepted by the government with the transition period, which ended January 1, 2017. From this date on the companies that produce medical ethanol, will be introduced the system of USAIS. Just recently I was told that all lines of these companies the system is already installed. So here I see no reason for concern from the point of view of execution of requirements of the government’s conscientious producers.

With regard to methanol is a potent poison, poison. We have in the regulations clearly defined objectives that use methyl alcohol. Otherwise, not specified in the law application of the substance of criminal responsibility.

— When will be allowed to sell alcohol online?

— In General, we have already carried out work in terms of enlargement of the integrated structures, and I do not see serious contradictions with colleagues from other departments who have had more stringent requirements in this part. Today, almost everything has come to a consensus that it is necessary to prevent the alcoholic products, e-Commerce, but to create the right mechanisms for its control. I think that in 2017 a decision will be made.