How mechanical engineering ‘promoted’ in Tatarstan

“Don't take pictures of Aurus! This is a guest car”

There is nothing new in opening an exhibition of equipment that deserves attention before the start of each status event in Kazan. This revives the interest of the guests: the uninitiated begin to understand who is who, and professionals evaluate who has advanced how much. Following this rule, the event producers of the annual board meeting of the Ministry of Industry and Trade of the Republic of Tatarstan demonstrated the latest achievements of the Tatarstan automotive industry. Together with the head of the republic, Rustam Minnikhanov, Deputy Minister of Industry and Trade of the Russian Federation Albert Karimov, a native of the Tatarstan government, who arrived from Moscow, examined it.

On the square in front of the entrance to the Lenin Recreation Center, there was a pair of KAMAZ giants shone in the frosty sun — a snow-white copy of the upgraded K5 family dump truck and a new generation M1945 tractor truck with a scarlet cabin. Both modifications entered the assembly line of the Kama automobile giant literally last year.

The Naparnik MSIU-4386 armored car in khaki from Remdiesel “parked” next to them. It is difficult to call it a new model, since it was adopted two years ago and serves in the “rear”, but it does not leave a boring impression. Then there were several luxury riverboats. The head of Khimgrad, Airat Gizzatullin, was especially interested in them until the distinguished guests arrived. According to rumors, Gizzatullin and Karimov like to sail.

Few people could see the main sensation of the automotive industry — the platform of the Atom electric car, which is being developed under the wing of KAMAZ and Rostec by the Russian Kama JSC. Or rather, to recognise it. The thing is that it was shown as a bare platform with a set of constructive solutions, removing the body. Atom looked like a child's car without a cabin. If it were not for a notification with the description, it would be impossible to guess its origin. Besides, the Atom platform was driven into the very “back” of the exposition, where not every guest could reach due to the severe frost. Rustam Minnikhanov, though alone, got there. Meanwhile, the organisers of the exhibition stressed that this platform is supposed to be replicated on other models of electric cars.

But right at the entrance to the building there was a majestic Aurus Kommendant. To be honest, it ceased to arouse interest, since it is exhibited at almost all Tatarstan exhibitions. Who hasn't taken a selfie with him! However, even in the cold, the journalists still tried to inspect it. “Don't take pictures of Aurus! This is a guest car," the strict security warning followed. It turned out that one of the VIP members of the board of the Ministry of Industry and Trade of the Republic of Tatarstan was driving a luxury car worth over 42 million rubles. However, his name was not disclosed, but this is the one who arrived before the arrival of the official delegation. After all, the luxury SUV was parked here long before the arrival of Rustam Minnikhanov.

Has the industry “plateaued”?

The results of industrial production in Tatarstan in 2023 are below the national average for the first time. The head of the Ministry of Industry and Trade of the Republic of Tatarstan, Oleg Korobchenko, reported that the industrial production index amounted to 103.3% against 103.5% in the country. This is much lower than the expected forecast of the Ministry of Industry and Trade of 104.6%. According to him, enterprises of the republic shipped products worth 4.7 trillion rubles. He did not explain the reasons for the braking at the finish, but apparently the effect of the high base of 2022 affected. Then industrial production showed an increase of 106.5%, and enterprises produced products worth 4.6 trillion rubles.

Apparently, the Tatarstan industry has “left” at the expense of mechanical engineering. According to Oleg Korobchenko, the volume of shipped products in the industry increased by 30% and amounted to more than 1 trillion rubles. With this result, the industry provided a 23% increase in production in the Republic of Tatarstan. Interestingly, officials have repeatedly highlighted import substitution projects from the rostrum, for example, the Ansat helicopter. However, the new manager of the Kazan Helicopters, Nikolai Yakovlev, who appeared in public for the first time yesterday, literally ran away from the press. They spoke evasively about the state of affairs at the Kazan Aircraft Production Association: “Thanks to the support of the president and the government of Russia, the company is working on the production of Tu-214 passenger aircraft. The goal is to produce 20 units a year," it is all that Korobchenko said. And, apparently, that was all he could say publicly.

Federal subsidies were expected to trigger growth in mechanical engineering. Last year, the entire Tatarstan industry received 80 billion rubles of state support, and the lion's share went to machine builders. “Albert Anvarovich is the best friend of our enterprises," Oleg Korobchenko confessed. In gratitude, Rustam Minnikhanov presented Karimov with a commemorative medal "100 years of the formation of the TASSR” at the very end of the award ceremony.

The rest of the industries — oil production, petrochemistry, energy — turned out to be near zero in terms of dynamics. As it follows from the report of the Minister of Industry, oil production stopped at 99.5% of the 2022 figure, chemistry at 95%, energy — 100.3%. Positive dynamics was achieved in oil refining — an increase of 102.4%. According to the Ministry of Industry and Trade of the Republic of Tatarstan, 986.4 billion rubles worth of products were shipped, 11.5 million tons of diesel fuel and 3.2 million tonnes of gasoline were produced.

“Pay taxes — get state support!”

Korobchenko did not avoid the problem of tax debts of enterprises of the Republic of Tatarstan, as did other ministers. Their goal is not to stigmatise debtors, but to encourage them to use federal support. But only those who are clean before the budget can get it. “By the beginning of the year, the arrears of Tatarstan enterprises to the republic's budget amounted to more than 2 billion rubles. Of these, 700 million are accounted for by operating companies," Korobchenko said and urged: “Pay taxes, sleep well, get state support!”

The head of the Ministry of Industry and Trade called for stimulating the purchase of domestic machine tools: “The first batch of machining centers is being assembled in the republic, the current localisation level is 30%. The machines were purchased by the Elecon plant and Radioelectronics named after Shimko (controlled by Nikolai Kolesov, a Tatarstan entrepreneur and statesman, head of Russian Helicopters). The issue of acquisition is also being considered by KAMAZ," he said.

According to the minister, at the initial stage, Tatarstan-made machines are more expensive than imported ones. “It is necessary to help enterprises compensate for the price difference so that they buy Tatarstan equipment," he asked, referring to the experience of Belarus. But he did not name the amount of subsidies.

New SEZ in Mari El

Timur Shagivaleev, the head of Alabuga SEZ, stated that after the start of the SEZ, it is necessary to rely on domestic investors. But it is more difficult to attract them, as economic conditions are tougher. Suffice it to say that the key rate is 16% per annum, so the payback period for projects has exceeded 10 years. And it's not enough to wait for so many willing people.

But the SEZ has a “trump card”. With the adoption of Resolution No. 1119, the Alabuga management company was able to reinvest taxes in infrastructure construction, and residents' capital expenditures are halved. According to Shagivaleev, the Ethylene 600 Plant and Deng Xiaoping Logistics Park are being built according to this scheme.

It is possible that a new SEZ in Mari El will operate under this scheme. Experts from Alabuga SEZ and KIP Master are involved as experts. But whether it will be under the control of Alabuga remains unknown. Meanwhile, the head of Mari El, Yuri Zaitsev, rejoiced at the expansion of cooperation with enterprises of the Republic of Tatarstan. At the end of the meeting, the heads of the regions signed a cooperation agreement.

The head of the Academy of Sciences of Tatarstan, Rifkat Minnikhanov, spoke about the tools for the development of scientific and technological sovereignty. According to him, a new strategy of the Investment and Venture Fund of the Republic of Tatarstan is being developed, and an “Endowment Fund” is being created under it. At the same time, participants of Islamic banking will have the opportunity to use it.

The dream is to step over 5 trillion

Deputy Head of the Ministry of Industry and Trade of Russia Albert Karimov continued the topic of ensuring technological sovereignty, pleased with the expansion of state support mechanisms for industry. “The republic has once again proved that it is the leading industrial center of the Russian Federation with a large volume of shipments and contributes to industrial growth in the Russian Federation," he praised. At the same time, Karimov considers a 7.5% growth in manufacturing industries (6% — in the Republic of Tatarstan) a personal achievement, since he himself oversees special engineering as deputy minister.

This year, the issuance of preferential loans at 3% per annum (there is nowhere lower) for suppliers of automotive components under a special FRP program will continue, he said. For the republic, Karimov sees promising participation in the development of unmanned aircraft systems, which will receive 700 billion rubles of state support. Also, in the development of components in the electronic industry, for which 210 billion rubles are allocated, he said. “The volume of support for industry and innovative projects for the republic constantly grows," Albert Karimov noted. According to him, three projects from the Republic of Tatarstan did not pass the competitive selection last year. “Let's work out and solve the tasks together," he said.

“It would be impossible to maintain stability if there were no state support, subsidies to support mechanical engineering, preferential loans from FRP (Industrial Development Fund — ed.)," Rustam Minnikhanov thanked for federal assistance in his closing speech. According to the rais Tatarstan, OPEC's decisions to limit oil production have been reflected on the results of the industry. Nevertheless, the dream of stepping over 5 trillion rubles of shipped products remains, Minnikhanov noted. The milestone of 1 trillion rubles of investments, which was dreamed of before, has already been achieved, the head of the republic noted.

It is impossible to reach 5 trillion without labour. It will be impossible to cover the shortage of personnel without attracting migrants, said the rais of Tatarstan. “It is necessary to reconsider the attitude to the issue and use the experience of KAMAZ. We have proposals on working with migrants at the federal level, we have submitted them to the government," he said.

However, first of all, it is necessary to give priority to working with internal potential, Minnikhanov believes. He agreed that there are few dormitories in the secondary vocational education system, which hinders the involvement of young people. “We need to pay attention to these issues. And, of course, such educational institutions should work with the customers of this workforce in a targeted manner," said the rais of Tatarstan.