25 Apr 2018 17:24

Manturov sees export potential in machine building, chemicals, metallurgy and timber

GORKI. April 25 (Interfax) - Russian Industry and Trade Minister Denis Manturov said there was substantial potential for growth in exports of heavy machine building products, machine building products for the oil and gas and energy sectors, high-value chemicals, metallurgy and timber.

"We are seeing more of a growth opportunity in machine building, besides the high-priority sectors which are today reflected in plans - this is the automobile industry, aviation, agricultural machine building, and road construction machinery. We see good potential in oil and gas machine building, energy machine building and heavy machine building," Manturov said following a meeting of the presidium of the Presidential Council for Strategic Development and Priority Projects.

The volume of growth here is estimated at roughly $17 billion.

High-value chemical products, including those overseen by the Industry and Trade Ministry as well as the Energy Ministry, are a second segment. "We are setting ourselves a goal of no less than $15 billion," Manturov said, noting that this includes plastics, polymers, tires, mineral fertilizer products and pharmaceuticals.

"And of course, this is also metallurgy and timber, the timber processing complex. Here, everything will depend on how projects for construction of cellulose and paper mills are implemented," the minister said, recalling that several projects are being developed with investors in various parts of Russia.

Manturov identified compensation of research and development costs for export-oriented projects, subsidies for comprehensive investment projects and soft loans from the Industrial Development Fund envisaging interest rate reductions all the way down to 1% as key export support instruments.

There are also plans to set a benchmark for export of 40% of all goods produced, he said.

Apart from the support measures currently available to the Russian Export Center (REC), the ministry is also counting on additional funding for, in the first place, creation of logistical centers and industrial zones, Manturov said. Thus, an agreement to this effect will shortly be signed with Egypt. "And development of service centers - these are segments which will provide for an increase in our producers' export potential to fulfill the goals set by the president," the minister said.