Business and government should play a one-sided game

Vladislav Ovchinsky, Head of the Moscow Investment and Industrial Policy Department, said at the SPIEF2022 in an interview with RIA Novosti correspondent Yulia Chicherina how the capital’s authorities and producers are taking today’s economic challenges, shifting activities to the track of active import substitution.

— Vladislav Anatolyevich, our meeting is taking place on the 25th anniversary of SPIEF. What brings you to the forum this year?

— First of all, we want to share our experience with colleagues from other regions, to tell how Moscow copes with the difficult situation in the economy. Many skeptics made disappointing predictions, as some large foreign enterprises and dealers withdrew from the market, and logistics chains witch had been building up over the years were lost. However, after three months of work under extraordinary conditions, we can say that all negative forecasts have failed.

We are sure that now is the best time for active work on import substitution of products that unfriendly countries previously supplied. Our producers show that they can not only produce the same products, but also export them at more attractive prices. I should mention that the situation in the capital’s economy is stable, we are actively developing investment activities, including through offset contracts and concession agreements.

— You presented at the forum the Marketplace of commodity cooperation of regions as a support mechanism for Russian producers. What is it?

— Indeed, we have launched the Product Cooperation Platform on the capital’s Suppliers Portal. It is a tool to help manufacturers and suppliers. It will help Russian and foreign manufacturers to place information about products quickly, find partners, raw materials, components, expand markets and quickly make transactions in electronic form.

Despite the fact that the site is launched on the capital’s portal, it will be useful to all, including industrial enterprises from other regions. They will also be able to find the right products and new marketing channels. The service will help in the coming years to reorient up to 30% of imports to friendly countries, as well as to identify niches for the development of production in the regions.

— How does the new service work?

— The site is free of charge. Manufacturers have access to the catalogue of Standard Item Units after registration. The catalogue includes more than 1.7 m detailed goods. If the user does not find the goods in the catalogue, he can add a new item. Electronic transactions and electronic exchange of performance documents are also available to users.

One of the site’s advantages is the possibility of automatic supply of products’ analogues, which is based on the comparison of parameters of required goods. The same algorithm is for the selection of components and consumables: filters can be configured both for the country and region of production, and for product characteristics. Today, there are more than 50.000 customers and 266.000 suppliers from all regions of the country on the Suppliers Portal. Registration at the Commodity Cooperation Site will give manufacturers access to the state order.

In the future, the service will allow to count all financial components of transactions directly on the site. It is planned to expand the built-in mechanisms, for example, it will be possible to calculate the cost of international delivery.

— In the days of SPIEF you were also speaking about the new Industrial Support Center for the capital. How does it work and could it help someone?

— The Industrial Support Center was launched in a test mode in April this year and has already received positive feedback from industrialists. How do we help? In fact, we solve problems faced by enterprises: from the organization of parking at the factory to the entrance to export markets. As well as those issues, that fall under the authority of various city departments. That is our goal to provide maximum consultation and solve complex situation in one-window mode. Specialists of the center will help both large enterprises and small and medium-sized businesses, if their activities are connected with production.

— Speaking of business cooperation with the capital authorities, you started the topic of offset agreements. How are things in this direction today?

— Offset contracts are quite interesting form of cooperation for production in different industries. Under the contract, the investor must either establish new production or upgrade existing production. In return, the city guarantees that it will purchase the products of this enterprise. The offset contract guarantees the producer sales in the long term – for 8-10 years.

The city has already concluded five offset sets, the aggregate volume of private investments for them amounted to RUB 12.9 bn, and the volume of purchases is almost RUB 73 bn. Some investors have already completed production and have started supplying medicines, medical supplies, food for dairy kitchens.

In the last quarter, we intensified these activities. This was facilitated by changes in federal legislation, which will soon allow us to involve medium and small businesses in the implementation of offset contracts. We will be able to conclude contracts with the volume of investments from RUB 100 m, which significantly expands the range of enterprises that will be able to participate in competitions. Through this work, we develop our business and create workplaces, increase the resource of taxes and other payments to the budget, improve the standard of living of citizens, reduce unemployment and buy for our urban customers what they need.

— Do you think will there be an uncomfortable situation for consumers due to the suspension of supplies of raw materials from unfriendly countries? For example, today industrialists are forced to change juice packaging to white bags because of the interruption of the supply of packaging dye.

— Any transformation of the economy leads to changes, including changes in consumer goods that are produced in the regions. The example you gave does not lead to changes in the final consumer qualities of the product. The fact that the package is not colored does not affect the quality of the product. And for us it is important that the consumer receives a quality product. There are no critical shortages or conceptual problems in the supply of capital enterprises.

— Moscow becomes the leader of the National Investment Ranking for the fourth year. What is the secret of success?

— Indeed, for the fourth year in a row we are the leaders of the National Ranking of the state of the investment climate in the constituent entities of the Russian Federation, which is compiled by the Agency of Strategic Initiatives. Moscow accounts for almost 18% of all Russian fixed investment and about half of foreign direct investment in Russia.

Is it hard to be a leader? At the meeting regarding the summing up of the investment rating, First Deputy Prime Minister Andrei Belousov noted that it is difficult to show positive dynamics, but it is even more difficult to hold on to Olympus.

Is not so much honor for us to be leaders, but it is a serious responsibility that we have to our business and citizens. The ranking’s indicators consist of various spheres of life. For example, it is assessed how well we develop the small business sector, how we work with the regulator, how much or little pressure on the business is exerted by various regulatory bodies.

Of course, all these factors combined give a correct integral assessment of the environment that is created in a given subject. Our leadership position is due to the coordinated work of all executive bodies of the city with business. Because it is not a one-sided game. When business works with the state in the same way and with the same goals, we always achieve these goals and get the best results.

Source: Ria.ru