‘In fact, we are robbed. We have a case when a medicine for 43 million is needed according to the court’s rule’

“Speak out, please”

As Rustam Minnikhanov explained, as a result of the reelection, the Board of Directors was expanded to 31 people.

“Roman, now you should speak,” he gave Vice Premier Roman Shaykhutdinov the floor.

He offered to offer the candidacy of the Tatarstan president as chairman: “Please, speak out.”

“Speak out, please,” Minnikhanov good-naturedly took up the phrase and the hall started to laugh.

After the unanimous election, the president offered Rafinat Yarullin as director general. “Mr Yarullin has been working for a long time, he work honestly. I don’t have other offers, personally I don’t,” he recommended his colleague.

Four from SIBUR

It should be added that four representatives of SIBUR joined the expanded board of directors. It is ex-SIBUR Board Chairman Dmitry Konov, Director General of SIBUR PJSC Mikhail Karisalov and Executive Director of Development and Innovations at SIBUR Daria Borisova. On that day, she arrived at the meeting together with new Director General of Nizhnekamskneftekhim PJSC Igor Klimov.

Director General of Kazanorgsintez PJSC Ayrat Safin who came from NKNK and ex-Director General of KOS Farid Minigulov were also in the hall.

Director General of TGC-16 JSC (part of SIBUR) Eduard Galeyev, new Minister of Industry of Tatarstan Oleg Korobchenko, Director of the Investment and Venture Fund of Tatarstan Aynur Aydeldinov, aide to the republican president Renat Galiyev also participated in the meeting.

Total ban from 10 July

Director of Strategy and Development of UTS Sergey Andreyev told them illustratively about the severity of the sanctions pressure on the chemical industry and not only. However, he tried not to scare the audience but rather warn: hurry up with supplies of the necessary feedstock, material and equipment imports. He said that the total ban on export of goods from Europe would to come in force on 10 July. The supply of several chemical products will stop after that date.

The total amount of prohibited products isn’t estimated yet, but 30-40% of products can fall out of the UTS basket, he said. According to him, medicines, food ingredients and, most importantly, plant protecting agents will be banned. The supply of tar, special polymers, additives to plastics, oil, solvents, surfactants, catalysts and other chemicals stopped, while several European suppliers refused to deliver even the products that aren’t under sanctions. Earlier, the company got good prolongations from European suppliers — up to 90-120 days. Now there is no insurance — a 100% prepayment

There are two ways to avoid a deficit: parallel import or search for analogues in other, permitted countries.

“It is a lottery every time: if they will go or not”

Financial restrictions for Russian banks are the main obstacle on this road.

“Payments in euro are impossible, in dollar are impossible. It is a lottery every time: if they will go or not,” said Andreyev. According to him, companies are switching to the Chinese yuan.

Not only the ban on processing Russian freight at European ports complicates the logistics. Nowadays the port in Saint Petersburg is drying up, therefore there is a readjustment of flows via the Far East, the Caspian, Iran, but this requires huge efforts.

“It is impossible to bring freight directly from India, only through Istanbul, Shanghai and send to Russia with local transporters,” he said.

As a result, the cost of transportation of one container rose to €8-10,000.

“Many think it is simple. But everybody forgets that there is a container, it is necessary to buy and organise a turnover,” Andreyev warned. He says that freight goes through roundabout ways, and if China and Turkey remain neutral, an improvement can be expected.

“One shouldn’t have illusions, but we still live mechanically. Many of our colleagues don’t sleep, look where the problems are and block. Anyway many start to fear,” the president agreed. He agreed companies to think about these problems. “We will stay in touch.”

Impossible to launch new medicine without sanitary zone

After that, the president quickly responded to a speech of Director General of Izvarino Pharma pharmaceutical company Orest Ibragimov that cannot launch the production of substances to treat different types of cancer and neurodegenerative diseases on a production site on Belomorskaya Street, near Kazanorgsintez PJSC. According to him, Nanopharma Development doesn’t have a sanitary protection zone, and the problem cannot get moving even after turning to head of Russia’s consumer rights protection watchdog Anna Popova. Meanwhile, there made medicines created on the basis of scientists of Kazan Federal University.

“An injection for patients with spinal dystrophy costs $2 million,” said Orest Ibragimov. “Such patients don’t live to see even two years, they are on ventilators. If the medicine is prescribed on time, they can even sit and sometimes walk. It is a miracle. We are going to set up the production of such substrates for these medicines.”

“You have made good progress,” the president praised. “I think your activity is important for us, but your medicine will not cost $2 million,” he promised to help to solve the problem with KOS. “Won’t there be 2 million rubles,” Minnikhanov asked again and offered to reflect on how suppliers of expensive medicines cash in on the poor.

“In fact, we are robbed. We have a case when a medicine for 43 million is needed according to the court’s rule. But we brought it directly for 6 million. Life is more valuable than money, but 1,8 billion rubles are allocated for all medicines in Tatarstan. If we don’t make our medicines, they will have to be brought then. Life made us develop our production. The West isn’t imposing sanctions where we don’t have gaps.”