The Kazan producer of drones is offered Czech engines

European companies wreck the joint projects with Russia due to sanctions-related scandals

Anti-sanction trips of Tatarstan President Rustam Minnikhanov with the delegation to Hungary and the Czech Republic 'have revived' several slowed joint projects. According to the officials who have visited Central Europe together with the head of the Republic, it is expected the launch of direct flights between Kazan and Budapest and the construction of the factory of infusion solutions in Chistopol. The members of the Tatarstan delegation admit that the industry still cannot do without foreign equipment.

European banks offer loans at 0% to businesses

The European business is friendly to Tatarstan and ready to cooperate. These conclusions were announced on 12 April at the Tatarstan Cabinet of Ministers by the Tatarstan delegation after the visit to the Czech Republic and Hungary. 'The trip gave the impression that Czech entrepreneurs are very friendly to Tatarstan, despite the sanctions, although the propaganda takes place, and of European level,' believes the head of the Chamber of Commerce and Industry of Tatarstan Shamil Ageyev.

At the same time, the sanctions complicate the contact with Europe, he admits, as they impede access to cheap money and technology. Meanwhile, Ageyev praises European measures to support business, noting that Tatarstan should take them into account. 'We have seen how big is the support from the European Union, and from the local authorities. For example, a technopark is under construction: half of the funds are allocated through the European Union, a quarter – regional, then all this is registered and passed to the Chamber of Commerce and Industry ownership, and then it works with the business,' he says.

Shamil Ageyev: 'The trip gave the impression that Czech entrepreneurs are very friendly to Tatarstan, despite the sanctions.' Photo: prav.tatarstan.ru

Also, the head of the CCI of RT was surprised by the credit support of businesses. 'You know, now in Europe it is almost negative rate. But it does not mean that banks are going bankrupt. It suggests that they give zero or even negative rate, and then through the development of production, taxes, wages and the reduce of unemployment it's all coming back,' he said.

Summing up the visit, the Minister of Industry and Trade of the Republic of Tatarstan Albert Karimov informed that it was signed an agreement of intents between the company Delrus Chistopol, which is engaged (and honestly, not for the first year) in the construction of the first in Tatarstan plant of the infusion solutions, and the company FAVEA Europe. It will design the plant and provide engineering services. This project has been preparing in Tatarstan long ago. The cost of the plant, according to media reports, was estimated at 700 million rubles. In 2014, there was even held the ceremony of laying the first stone in the construction of the plant. However, the Czech partners were not mentioned then. 'The first stage was the design and technological development, now they are thinking about the contract and the start of the construction,' said Karimov. However, he refused to tell about the timing of the plant start.

What does Tatarstan need Czech engines for?

'We have agreed to continue the cooperation between the well-known Czech company PBS Velka Bites and our companies in the field of aircraft construction,' mentioned Karimov, listing other projects. However, the press release states that it is about the localization of the production of small-sized gas turbine engines at the production facilities of JSC scientific and production association OKB named after Simonov [Experimental-design Bureau named after Simonov – editor's note].

The OKB named after Simonov is one of the leaders in production of unmanned aircrafts in Russia. Now it develops high-profile projects on the creation of the civil complex of UAV of long-duration flight, which is at the design stage by 2018. He can lift up to 2 tonnes of cargo and to withstand low temperatures, wherefore it received the name 'Arctic'. It has its military counterpart; however, its development is kept secret.

Now the OKB named after Simonov develops high-profile projects on the creation of the civil complex of UAV of long-duration flight. Photo: kzn.ru

Besides, Kazan OKB in October 2011 won the tender of the Ministry of Defense on the research work of an unmanned combat air vehicle weighing up to 5 tonnes. It received funding at 1 billion rubles. Presumably, it is a type of heavy combat machine with the name Altair with a mission duration of not less than 12 hours. It is known that the engines for the Altair were designed and are manufactured by the German company RED Aircraft, which is owned by a native of Russia and a graduate of the Kazan State Technical University named after A. N. Tupolev Vladimir Raikhlin. And now there is information about the production of engines with the Czechs.

'The funding can be closed down, why?'

Apparently, none of the officials did not want to disclose the information about the participation of the Czechs in the project due to the military theme. 'In order not to let others down, I would not answer. The details are not necessary, what company, what it will be. Because we can let down our partners,' said Ageyev.

Thus, according to him, it may not be connected with the defense industry. 'And with civilian it is the same thing. The funding can be closed down, why? We know, for example, in pharmacology the Czech company finds a loan at 60 million, insures it, and they can't make through alternate moments, but through direct they immediately begin to inflate scandal. So you should be very careful with the press in these moments,' he said to journalists. Thus, it can be assumed that the issue of Czech engines has almost been solved. On the question which of the announced projects is the closest to implementation, Karimov said: 'The one about which we cannot tell about.'

Also, they have achieved the agreements for further work on localization in Tatarstan of the project of the Czech company Jihostroj a.s., which is engaged in the production of automotive components, on the cooperation of Zelenodolsky plant named after Gorky with the company InteReka, as well as with Czech CSRC (the Czech Space Research Centre) with the universities of the Republic of Tatarstan and so on, told the Minister.

Karimov noted the renewed talks about direct flights between Kazan and Budapest by Wizz Air airline. Photo: about-planes.ru

Flights to Budapest from Kazan are expected by the end of the year

As for the results of the trip to Hungary, Karimov noted the renewed talks about direct flights between Kazan and Budapest by Wizz Air airline. 'There are some technical problems, but the parties intend to come to an agreement,' he said. What issues are exactly he did not say but noted that they plan to solve them by the end of the year. Ageyev hopes that direct flights from Kazan to Prague, which Czech airlines will launch on 27 April, will stimulate negotiations with Wizz Air.

The parties emphasized a number of promising areas, but no exact dates or data on them have not been said. It is a continuation of cooperation between the Tatneft PJSC with the Hungarian company MOL GROUP, the development of cooperation with Hungarian companies with KAMAZ PJSC in the production of buses and agricultural machinery; the cooperation of Tatarstan enterprises with the company Knorr-Bremse Fékrendszerekc and other Hungarian companies in the field of automotive industry and automotive components production, the development of cooperation of the company Tatkhimpharmpreparaty with Hungarian pharmaceutical enterprises; the expansion of cooperation with Hungary in the field of agro-industrial complex; the study of the experiences of Hungarian agricultural producers and advanced technologies of agricultural production.

As for the funding of all these initiatives, the authorities are going to impose it on AK Bars Bank and Hungarian Export-Import Bank. These banks have agreed to develop cooperation, as well as to provide financial support for the implementation of joint projects in the sphere of agro-industrial complex. 'It is a base bank, which is engaged in the support programmes both from the point of view of promoting the export of Hungarian products and from the point of view of funding those projects that will be developed in the Republic of Hungary. Accordingly, under all these projects, which are in the stage of development, we agreed that AK Bars Bank together with the Hungarian Bank will consider the possibility of joint lending to these projects, attraction of credit lines, syndicated lending for specific projects,' said Karimov.

Albert Karimov: 'We agreed that AK Bars Bank together with the Hungarian Bank will consider the possibility of joint lending to these projects, attraction of credit lines, syndicated lending for specific projects.' Photo: kazanfirst.ru

Ageyev added that it is about the crediting of Hungarian entrepreneurs operating in Russia and Tatarstan. 'They are interested because they need to sell products. In this respect our market is big despite the sanctions and the devaluation of the ruble, all this will settle down a bit. And we are accustomed to Hungarian equipment, Czech equipment,' says Ageyev. According to him, Tatarstan has several dozens of companies from Hungary.

By Dina Valiullina