Alexey Likhachev: In 2016 we are planning to allocate 36,5 billion rubles for export support
On the 2 of October First Deputy Minister of Economic Development of the Russian Federation Alexey Likhachev gave a speech at roundtable «Realizing export potential. The devaluation effect and measures of state support» within the framework of International Investment Forum Sochi-2015.
The devaluation of the national currency by almost half has created a strong competitive advantage for domestic manufacturers operating on international markets. At the same time, high interest rates, foreign investment outflows and restricted access to credit markets in a number of countries significantly affect the ability of exporters to increase their output. This situation raises the issue of state support for domestic exporters. The anti-crisis measures taken at the beginning of this year include lending instruments and the lifting of certain administrative barriers. Participants of the roundtable discussed what measures of state export support are the most effective, and new state support measures to be taken.
Alexey Likhachev focused on figures of foreign economic activity: depreciation of turnover in dollars amount to 34% during first 7 months in 2015, decrease in export to 30%, in import – to 40%. However he noticed that assessment of turnover in dollars is not very accurate. «It is connected with market movement as well as trade in national currencies with a large amount of countries, in particular with one of our principle trade partners – Belorussia» - said he.
In the first 7 months of 2015 export volume increased 4,2% in particular non-resource export increased 7,2%. «Last year export volume of agricultural goods amounted to record level. This year the trend continues. – said the First Deputy Minister. – Despite serious challenges for our country Russian companies including regional develop actively foreign market».
The First Deputy Minister told about financial and non-financial state support for non-resource exporters. Financial state export support measures include subsidised interest ratewith export credit (Vnesheconombank, JSC Roseximbank), insurance support for Russian exporters (JSC EXIAR), provision of state guarantee (Vnesheconombank). «State support increased 30fold. In 2015 budget expenditure amount to 18 billion rubles, in 2016 – in fact doubled, planned 36,5 billion rubles», - said he. Therefore export is one of the main drivers of economic growth in Russia.
Regarding non-financial state support Alexey Likhachevidentified the following areas: information support, trade representatives activity, providing favorable environment for access of Russian goods, services and investment to foreign markets and activity of intergovernmental commissions and working groups.
Representative of Ministry of Economic Development focused on design work of Trade Representatives. «Since the start of the reform of Trade Representatives, it was at the end of 2012, 641 projects have been adopted for an overall amount of 300 billion dollars». Besides he noticed that present year more than 190 business missions have been conducted by Trade Representatives.
Alexey Likhachevnoticed that for the first time geography of Trade Representatives has extended. A new one have been opened in Republic of South Africa and Cuba, till the end of 2016 there is planned to open Trade Representatives in Mongolia, United Arab Emirates, Myanmar and Venezuela.
The First Deputy Minister noticed that the effectiveness of these measures can be improved. «The main strategic objective in the area of export support is the formation of an integrated system of support for exports, implementation of targeted measures of support based on the needs of entrepreneurs,» - said he. Russian Economic Development Ministry is developing a draft federal law «On export support in the Russian Federation». It will determine purposes and principles of government policy in the field of export support, the powers of state bodies in the field of export support, measures of export support (financial and non-financial). The bill will introduce procedure for the development and implementation of special measures to support exports, which is of particular importance for the economy of the Russian Federation.
Representative of Ministry of Economic Development told about implementation of road map «Support for access to foreign markets and export support». This document is based on the needs of business. Key questions are questions of procedure – questions about provision of customs procedures, questions of currency and export control.
«Implementation of these arrangements could facilitate access of Russian entrepreneurs to export activity, facilitate customs and administrative procedures and all that could make it possible to increase rate of growth of non-resource export» - concluded Alexey Likhachev.