Financial condition of Russia's systemically important enterprises stable, but risks exist related to capacity utilization, debt - minister

MOSCOW. March 4 (Interfax) - The financial and economic condition of Russia's systemically important enterprises in industry and trade is generally stable, but there are risks associated with underutilization of production capacity and difficulties in the debt sector, Industry and Trade Minister Anton Alikhanov said.

"We closely monitor the financial and economic condition of systemically important organizations. So far, there are no systemic issues, apart from certain corporate problems. However, there are risks related to attracting new loans, servicing credit debt, and the loading of large enterprises that depend on government procurement. We are keeping these matters under special control," Alikhanov said on Tuesday when speaking at a meeting of the State Duma Committee on Industry and Trade.

"As of today, we see that the Central Bank [of Russia]'s monetary policy has already somewhat cooled investment activity in manufacturing - from 25% growth over six months to 18% by the end of the third quarter of 2024. However, this is still a high level, driven by demand for domestic industrial products from consumer sectors," Alikhanov said.

Government support remained the key driver of investment growth, he said. The highest increase in capital investment was observed in strategically important sectors - radio electronics (+85.6%), the automotive industry (+42.3%), the chemical sector (+41.0%) and electrical equipment (+32.8%).

"It is now crucial for the industry to have access to a full range of stimulus measures to maintain momentum at the start of approved national projects. These projects will serve as key drivers of industrial development over the long term, shaping long-term priorities and growth areas," Alikhanov said.

"All mechanisms embedded in them [national projects], including new ones, must be launched this month," he said.