Russia and economic war by the west #2

Appetite came during import substitution

Speaking yesterday at parliamentary hearings in the Federation Council, Vasily Osmakov, First Deputy Head of the Ministry of Industry and Trade, announced the government’s actual transition to a new model of import substitution: if until now it was only about economically justified substitution in critical industries, then under the sanctions, needs are expanding, and the government needs to “Learn to launch planned unprofitable projects.”


wareness of the scale of what is needed is also growing: the portfolio of priority investment projects is estimated at 5.2 trillion rubles. (164 projects in the chemical industry, pharmaceuticals, metallurgy, mechanical engineering), and taking into account aviation, shipbuilding and electronics, it exceeds 6 trillion rubles.

As the deputy minister explained, this refers, for example, to the localization of the production of key substances for the production of vital medicines, the development of a universal component base for the automotive industry, and the “sovereignization” of rolling stock. Earlier, we recall that the Ministry of Industry and Trade intended to concentrate efforts on several key industries, but their needs, probably, made it clear that import substitution would have to be dealt with in related industries related to them by supply chains.

Support for enterprises is packaged within the framework of existing mechanisms, increasing the pace and volume of their implementation. Thus, under the R&D subsidy program (Decree No. 1649 of December 12, 2019), the same number of projects were launched in 2022 as in 2019–2021 (130–140 projects). Interest in concessional financing of the Industrial Development Fund (IDF) has grown three to four times since February due to a decrease in the availability of bank lending, which required additional capitalization.

Expanding demand for product replacement is pushing the White House toward clustered release support.


All projects will receive comprehensive state support - tax preferences, subsidizing preferential rates and off-take (guarantees for the purchase of products). Under priority projects, companies will be able to receive preferential loans for up to 15 years at a rate of up to 5% per annum and state guarantees or guarantees from VEB.RF for banks. It will be necessary to allocate 126.1 billion rubles from the treasury for these purposes. until 2030, while in 2023 the budget provides for only 5 billion rubles - subsidiary programs reach a peak with a sample in the third or fourth year, Mr. Osmakov explained yesterday. The first loans can be issued already in November-December.

The White House is looking for approaches to state support for progress
Under these conditions, reverse engineering becomes a key tool - the development of production according to existing imported samples that need to be repeated. According to the Ministry of Industry and Trade, there are more than 300 positions of critical components in total - we are talking about knives for conveyors of confectionery factories, as well as small engines, but for most of them it is possible to assemble and produce Russian counterparts. For this, enterprises will be able to receive grants for the development of design documentation for the production of dropped components, the Agency for Technological Development will deal with the issuance. The Federation Council also insists on the development of reverse engineering and "fast" R&D, while they are counting on an audit in the regions - an assessment of the real production capabilities of enterprises and the main directions of import substitution."

Mishustin distributed supervision of high-tech industries among vice-prime ministers

MOSCOW, October 21 - RIA Novosti. Prime Minister Mikhail Mishustin has distributed new responsibilities for supervising high-tech industries among his deputies, the government's Telegram channel reported .

—Andrey Belousov — development of end-to-end technologies, space systems and services;

—Tatyana Golikova - accelerated development of genetic technologies;

—Denis Manturov - technologies of new materials and substances;

—Alexander Novak — energy storage systems, power transmission technologies and distributed smart power systems, hydrogen energy;

—Dmitry Chernyshenko - development of artificial intelligence, communication networks, quantum computing and communications, industrial software and Internet technologies.

[]

Vladimir Putin proposed assigning new directions to the vice-premiers at a meeting of the Council for Strategic Development and National Projects in mid-July. The President called for "more ambitious indicators" to be determined based on the needs of the economy.

lancelot wrote:Hydrogen energy is basically a waste of time. Russia has loads of natural gas which is a lot more energy dense than hydrogen.

lancelot wrote:Hydrogen energy is basically a waste of time. Russia has loads of natural gas which is a lot more energy dense than hydrogen.

sepheronx wrote:It's probably for export potential and having the technological base.

Also, I think Andrey will be probably overlooking the microelectronics base aspect since Roscosmos is also a player in that field.  Could be wrong though

Hole wrote:
Bus stop in some baltic "state" 

par far wrote:There are talks of the EU and the collective west stealing Russian assets, that maybe worth up to $400 billion.

How does Russia respond to this?

kvs wrote:

par far wrote:There are talks of the EU and the collective west stealing Russian assets, that maybe worth up to $400 billion.

How does Russia respond to this?

You have to be more specific.

The NATzO west has already seized Russian companies and property abroad.   So what assets are they yapping about?

par far wrote:

All the Russian assets that have been stolen, how will Russia respond?

Germany's largest union IG Metall on Friday called on workers in the metal and electronics industry to strike as pay talks stalled amid high inflation.

"Warning strikes" in the vast sector, numbering some 3.8 million employees, will begin Saturday.

Workers in North Rhine-Westphalia, Germany's most populous region and its industrial heartland, were among the latest to announce strike action over the weekend.

Management and unions have for weeks been engaged in talks over a new pay deal but failed to come to an agreement before the end of an obligatory negotiation period.

IG Metall has demanded an eight-percent increase for workers in the key sector, which includes around 26,000 businesses in the auto, electronics and manufacturing industries.

Employers have countered with an offer of a 3,000 euros ($2,980) bonus, valid for the next 30 months.

The bonus could "help" but would be quickly used up as prices for energy and food have soared, said IG Metall chief for North Rhine-Westphalia Knut Giesler.

Employees needed a "quick and durable" to match runaway inflation, he said.

The annual pace of consumer price rises rose again in October to 10.4 percent, figures published by the federal statistics agency Destatis showed.

The head of the employers' federation Gesamtmetall Stefan Wolf told the Sueddeutsche Zeitung daily industry had made a "good offer" despite "very uncertain times" for business.

Talks between the two sides will resume on November 10.


https://www.barrons.com/news/german-industry-workers-to-strike-from-saturday-union-01666958708