Production in Russian manufacturing could drop 6% in 2022 despite growth in defense sector - Manturov

MOSCOW. July 15 (Interfax) - The measures that the Russian government has taken thus far have assisted the country's industrial sectors in avoiding a sharp decline; however, manufacturing could still decline around 6% in 2022 despite the significant increase in the defense sector, Industry and Trade Minister Denis Manturov said in the State Duma during the review of his candidacy for appointment to the post of Deputy Prime Minister.

"The measures [mentioned] have helped the industrial sectors avoid a sharp slump. Specifically, processing finished nearly 2% in positive territory in the first five months, though we do not reassure ourselves with this result, since it was primarily owing to the inertia of industries with long production cycles and pre-formed stocks of materials and components," Manturov said.

"To be frank, we expect a change in the indicator associated with the drop in exports and the closure of Western markets. This could result in a decline in volumes in large-capacity industries, including metals, chemical complex, and timber industry. Therefore, output in manufacturing could drop about 6% for the entire year even when accounting for appreciable growth in the defense sector," Manturov warned.