Issues of the region's industrial complex operation were discussed at the Vitebsk Regional Executive Committee
External economic pressure has proven to be sensitive for industry and has had a certain negative effect. According to the Deputy Chairman of the Regional Executive Committee, Anzhelika Nikitina, overall, by the end of 2022, a shortfall in revenue for the industrial complex of about 1 billion rubles is projected. In such a situation, it is important to respond promptly to sources of instability and develop measures to prevent a decrease in operational efficiency. Thanks to the work carried out by the Regional Executive Committee together with business entities, it has been possible to minimize losses since April, and there are other reasons for optimism. For example, as of today, the industrial complex has operated profitably, and it has been possible to increase both actual prices and profit from sales, as well as net profit. Sales profitability, excluding petrochemicals, was 7% and increased by 2 percentage points compared to the same period in 2021.
— In fact, today we are emerging from the difficult period of the beginning of the year, increasing production volumes, and searching for new sales markets, although not as quickly as we would like. At the same time, problems with logistics and settlements for sold products persist, but certain measures are being taken at the government level. In particular, a new package of anti-sanction measures has been prepared today. At the same time, we are already seeing a positive effect from previously adopted decisions: if for 8 months only 4 out of 13 sections of the industrial complex showed positive dynamics, then in August, compared to July, such a process is observed in 11 sections, — noted Anzhelika Nikitina.
In addition, the Deputy Chairperson of the regional executive committee noted that industry generates about 50% of the local budget revenues of the region, and it is possible to increase this indicator. For example, communal industrial enterprises increased their contribution to the treasury by 1.7 times, and representatives of the non-state sector of the economy – by about 2.5 times.
— This indicates that enterprises are working, and there are all prerequisites for Vitebsk region to reach 100% of industrial production volumes by the end of the year (excluding oil products), — believes Anzhelika Nikitina.
At the meeting of the regional executive committee, emphasis was placed on the reserves that will allow achieving this result. They exist in all sectors, from food industry to instrument engineering and petrochemicals. Moreover, enterprises worked differently: some managed to stabilize the situation, reorient to new sales markets, while others are lagging behind. Issues of increasing product output for a number of organizations producing finished products and equipment, as well as for the metallurgical and pharmaceutical industries, are being resolved by attracting more effective owners.
Vitebsk manufacturers actively use export credit opportunities. However, additional organizational measures are needed to develop new supply chain logistics and resolve issues with transport links. Wood processing has suffered the most in this aspect.
— We have appealed to the Russian Embassy regarding ensuring access to road transport and the possibility of opening checkpoints on the territory of the Russian Federation. Problems with settlements also remain, as evidenced by the increase in external accounts receivable for non-state enterprises. And here we are taking organizational measures through embassies, through our colleagues abroad to recover these amounts, — explained Anzhelika Nikitina.
The external situation has given additional impetus to the development of import substitution. In January-June, enterprises produced import-substituting products worth almost 484 million dollars, with a growth rate exceeding 116%. And there is confidence that industrialists will cope with the annual target for this indicator. Over the half-year, due to import substitution in the domestic market, the conditional savings of foreign currency amounted to about 82 million dollars.
In this direction, enterprises are mastering new types of import-substituting products both for the domestic market and in cooperation with Russian partners. For this purpose, the capabilities of the electronic platform "Import Substitution" of OJSC "Belarusian Universal Commodity Exchange" are used, on which about 150 organizations from the Vitebsk region are accredited. The regional executive committee has formed databases of the needs of the real sector of the Vitebsk region's economy in products of Russian production, as well as proposals from organizations interested in increasing supplies to the Russian market, which includes more than 330 entities.
To give positive examples, OJSC "Zavod "Evistor" has started producing electromechanical devices and components for LLC "Rostselmash Combine Plant". Orsha's "Krasny Borets" has developed a universal high-precision cylindrical grinding machine, and a robot-controlled machine and 10 more machines with increased metal processing accuracy are on the way. "Vityaz" is launching the production of electric heating boilers for individual use. The Vitebsk Oil Extraction Plant now has rapeseed oil – refined deodorized grade "P", which is bottled in PET bottles, and a number of other products.