How is the import substitution process organized in the Vitebsk region under external sanctions pressure?
Anzhelika Nikitina, Deputy Chairperson of the Regional Executive Committee, told "Vitebskiye Vesti" about how this process is organized in the Vitebsk region, how to adapt to the new economic reality, and what support can be expected by the entrepreneurial sector ready to solve import substitution issues.
— Annually, the Regional Executive Committee develops an action plan for import substitution, the goal of which is to reduce the import intensity of manufactured products and dependence on foreign supplies, — noted Anzhelika Alexandrovna. — Based on the results of last year, due to its implementation, corresponding goods worth about 780 million dollars were produced; the target for 2022 is almost 900 million dollars. If we talk about the results of the 1st quarter, the volume of import-substituting products manufactured amounted to 225 million dollars, with a growth of 19% compared to the same period in 2021.
It is clear that we began to feel the consequences of the imposed sanctions a little later. These figures are not so much a reason for complacency, but an indicator that Vitebsk region is capable of handling such tasks. Much depends on ourselves, so, considering the new reality, we need to significantly intensify and accelerate our efforts in this area, paying attention to the most sensitive aspects. The state is ready to accelerate import substitution processes by developing systemic measures to support initiatives. It is also necessary to increase the effectiveness of interaction between business and authorities to find reserves and opportunities to cope with complex tasks.
THE POTENTIAL OF BUSINESS IS INEXHAUSTIBLE
— A total of 76 enterprises from the Vitebsk region are included in the state import substitution program, producing 140 types of goods designed to be an alternative to foreign products, — emphasized the Deputy Chairman of the Regional Executive Committee. — There are many examples of how private businesses have found a niche with high potential in import substitution, ensured product quality, and successfully integrated into the production chains of large manufacturers. Among the most striking examples are LLC "Novy Vek SPRING" (compression springs) and PE "Vitebskiye Pod"yomniki" (lifting cranes). Pharmaceutical companies "Belkarolin," "VIK — Animal Health," LLC "Rubikon," and a number of other manufacturers are actively working in this area. There are successful import substitution projects in the footwear industry.
Nevertheless, during production monitoring, we constantly identify unused niches and see that the potential of small and medium-sized businesses in this direction is inexhaustible. To realize it, we need to find new opportunities for cooperation and consolidation of efforts, involving an increasing number of economic entities in the interaction orbit, and more actively utilizing the potential of university science. Tomorrow will be successful for those who quickly adapt today and integrate into technological processes, replacing Western suppliers who have left the market. The benchmark is that across Belarus, the list of import-substituting products includes more than 2.7 thousand items.
COOPERATION ON THE EXTERNAL CIRCUIT
— One of the tools for overcoming sanctions pressure is the development of cooperative ties within the framework of the Union State of Belarus and Russia, as well as the use of the potential of partner organizations of friendly countries and Belarusian foreign diplomatic missions, — said Anzhelika Nikitina. — The contractual basis for intensifying interaction with Russian partners has been formed and includes more than 100 cooperation agreements between districts, with 26 documents signed at the level of regional administrations. Taking into account the current conditions, the regional executive committee is conducting a full inventory of it and is forming an up-to-date agenda for business meetings and visits to Russian regions, primarily with the participation of regional leaders.
Private enterprise "Vitebskiye Podemniki" plans to commission a new plant for the production of manipulator cranes by the end of 2022. In the future, it is planned to produce equipment with a lifting capacity of 16 to 100 tons at this site, both stationary and on truck chassis.
For example, in the near future, a delegation from the Vitebsk region, headed by the chairman of the regional executive committee, will travel to the Pskov region, followed by a meeting with the leadership of the Kursk region at the "Belagro" international exhibition in Minsk. We are working on a visit of an official delegation from the Vitebsk region to Volgograd. One of the central themes of such events is the search for areas of cooperation and opportunities for producing mutually complementary goods, and building cooperative chains involving Belarusian and Russian manufacturers. These are just the most immediate plans.
GUIDE TO SUPPORT MEASURES
— A considerable number of tools for stimulating import substitution production have been created in Belarus, so it is important to navigate and use them correctly. Some more are in progress and will soon be available to businesses, — noted Anzhelika Nikitina. — Contract exchanges are widely used to enhance the interaction between the business sector and major customers. Many large enterprises organize events online and offline based on their divisions. Roadmaps for their implementation have been formed at the level of the Ministries of Economy, Industry, and the concerns "Bellegprom" and "Bellesbumprom". With the help of these platforms, one can quickly obtain general information about manufacturers' needs for components, as well as cooperation conditions and prospects. Recently, an online import substitution platform based on the Belarusian Universal Commodity Exchange has been launched, where one can find a partner. A similar project, but on a regional scale, taking into account the specifics and needs of the Vitebsk region, is planned to be launched on the regional executive committee's website.
There are a number of credit projects in the country to stimulate small and medium-sized businesses. Banking institutions are preparing to introduce a special product for import substitution product manufacturers with attractive terms. In addition, changes to a regulatory act are currently being prepared to simplify the procedure for purchasing import substitution products. Amendments to a government decree are forthcoming, which will grant regional executive committees the right to support import substitution projects using the regional innovation fund.
And this is far from a complete list of legislative and financial support opportunities for cooperation and import substitution initiatives. Therefore, the regional executive committee is always ready to help navigate the tools and select the most suitable ones for specific initiatives. We are also orienting local authorities towards this.