To do without migrant workers: Kazan Helicopters shows launch of capacities in Tetyushi

A slower economic growth of 103,6% and a more vivid influx of investments of 104,7% are forecasted in Tatarstan

Tatarstan entrepreneurs demonstrated moderate activity when applying for a preferential loan in FOT 3.0 support programme. To revive investments, the federal authorities are ready to make dramatic changes to the legal regime of special economic zones (SEZ), but eight new special economic zones that will compete with Alabuga have appeared in our country at once without them, the republic’s Minister of Economy Midkhat Shagiakhmetov at the final session. Despite the hardships, Tatarstan President Rustam Minnikhanov set a task of providing at least 3,6% of Tatarstan’s GRP growth in 2022. Read more in Realnoe Vremya’s report.

Economy grows a couple of per cent

Tatarstan Minister of Economy Midkhat Shagiakhmetov summed 2021 up at the meeting and outlined tasks of socio-economic development of the republic in 2022 excluding the next two years from the outlook as it was done earlier. According to his data, Tatarstan’s gross regional product was 3,259 trillion rubles (+3,8% compared to 2020 at comparable prices), or 100,9% compared to 2019 before the pandemic.

The latter figure is even more important because it permitted him to claim that the republic’s economy recovered after coronavirus restrictions. He says that most sectors of the economy bounced back except for public catering that cannot yet operate to the full. Nevertheless, the retail turnover exceeded a billion rubles, while the average salary grew by 1,05,8%, to 44,930 rubles, he said.

The minister’s outlook reads that the economy will continue its recovery cycle in 2022 and the expected GRP growth should be at least 103,6%. Shagiakhmetov expects sustainable development will provide the economy with as little as 476 billion rubles of income and 102,7% salary rise. At the same time, he criticised the performance of balance commissions that formally look for recovery procedures.

“Only 12 in 1,663 enterprises (unprofitable ones) were found growth reserves,” the minister was indignant. “The industry has serious growth reserves.”

Sources of investment: investment protection and promotion agreements and more special economic zones

The second task for 2022 is to stimulate investment influx. Shagiakhmetov says 680 billion rubles of investments were attracted to the fixed capital last year, or 104,5%. This year the task is more ambitious — 754,4 billion rubles, or 104,7%. “The ratio of investments to GRP must be at least 25%, while now we have 20,3%,” he was concerned.

The economy minister sees pilot investment projects that could become potential participants to sign investment protection and promotion agreements (IPPA) as sources of investment growth. However, he didn’t call those who are on the list and the possible total amount of investments. A decree of the Russian government No. 1119 for management companies of SEZs and industrial parks is considered another resource. “Eight new SEZs have appeared this year, competition for investments is growing,” he stressed.

Russian Vice Minister of Economic Development Alexey Khersontsev said at the meeting that the federal authorities were going to rewrite the legal regime of SEZs. Tatarstan offers to permit the production of excisable goods and expand the territory of Alabuga for petrochemistry.”

“The Russian Ministry of Economic Development will consider Tatarstan’s interests in the expansion of the territory of Alabuga Special Economic Zone to locate petrochemical projects here,” the vice economic development minister agreed. “Special economic zones of the republic play an important role in attracting investments. In 2022, we will need to continue the work to develop legislation on SEZ. I know that the issues of the possibility of excisable activity in SEZ for metallurgic projects and the expansion of Alabuga SEZ to support investments in petrochemistry are topical for Tatarstan.”

PSEDA: three-year periods not interesting?

Meanwhile, the economy minister is also concerned about three-year-old Priority Social Economic Development Areas that cannot provide concessions on insurance premiums stopped being interesting for residents.

“This year, it is planned to attract 34 new residents, 12,2 billion of investments and create about 2,800 jobs in Tatarstan PSEDAs,” the economy minister said. “To do this task, the heads need to develop and approve a plan of events with specific measures designed to achieve PSEDA efficacy indicators.” Only one resident has launched new products this year, 75 in 85 residents did earlier.

Shagiakhmetov said that as of late 2021 Tatarstan PSEDAs have 118 residents, which invested 42,1 billion rubles and created about 20,000 jobs. 11,3 billion rubles of investments and 9,700 jobs were in 221. Nowadays 121 companies work in Tatarstan PSEDAs that invested 170 billion rubles.

Bad appetite for FOT 3.0

Entrepreneurs don’t rush to take out salary loans in FOT 3.0 support programme. “Since the beginning of the year, they have received ‘salary loans’ for a total of 3,023 billion rubles, while 88,7 billion rubles were granted across the country in general,” said Alexey Khersontsev said dropping a hint to the bad appetite of SMEs.

Preferential loans at 3% a year are granted to SMEs from sectors affected during the crisis. Throughout the validity of the loan agreement, the borrower must keep 90% of the staff. The FOT 3.0 replaced the previous preferential programme FOT 2.0 with 2% a year. On 1 March, Russian Prime Minister Mikhail Mishustin signed a decree on allocating about 7,7 billion rubles for the FOT 3.0 preferential programme for businesses.

Director of Kazan Helicopters Vladimir Ginsburg shared experience of how to find a workforce not far from Kazan. According to him, 700 workers went from the helicopter plant to the Kazan Aviation Production Association. Therefore they transferred a part of welding operations to Tetyushi District, Tatarstan. 9,300 operations are done by the capacities of the Tetyushi mechanical plant, and it is planned to expand them to 11,000. The total number of staff is 93 workers, the average age is 44 years. According to him, Kazan Helicopters plans to build a new plant for 4,5 ha and raise the salary to 47,000 rubles. The economy minister said the authorities would support the localisation of Kazan enterprises in municipalities.

Keep the growth

A recovery of the economic growth of 3,8% was registered in Tatarstan in 2021, gross regional product was 3,3 trillion rubles.

Now it is important to fix the dynamics, noted Tatarstan President Rustam Minnikhanov at the meeting of the republic’s Ministry of Economy:

“The plans for this year are no less serious, at least 103,6%. It is our minimum because our strategy is to reach 5 trillion rubles of GRP by 2030,” he stressed giving the ministry a task of looking for reserves for economic growth.” “The stimulation of investment activity for all power levels is the central macroeconomic task. The annual growth of investments must be at least 5%.”

Luiza Ignatyeva