Denis Pushilin: ‘The machine-building complex of the DPR is ready to integrate into the chain of enterprises of Tatarstan’

09:00, 09.12.2022

The main political guest from Donbass was shown how to build integration with the regions of Russia

Denis Pushilin: ‘The machine-building complex of the DPR is ready to integrate into the chain of enterprises of Tatarstan’ — Photo: realnoevremya.ru/Maksim Platonov

“There is no electronics, no hydraulics, we have to import from China. Is this import substitution? Nothing like that," the head of the Tatarstan regional branch of the Union of Machine Builders of Russia, Radik Khasanov, lamented at the plenary session of the machine-building forum 2022. Denis Pushilin, the acting head of the DPR, arrived in Tatarstan for the first time on 7 December and, it seems, he was not confused by the speech about the consequences of the fascination with globalisation for the Russian economy. About how the first acquaintance of the head of Donbass with the Tatarstan machine-building complex took place — read in the report of Realnoe Vremya.

Pushilin on economy of the DPR: it's not just coal

The Tatarstan Machine-Building Forum 2022, which opened in the Kazan Expo IEC, was waiting from early morning for only one and truly new guest — the acting head of the Donetsk People's Republic. Despite the fighting in the DPR, Denis Pushilin flew to Kazan to establish economic ties with Tatarstan and prepare the first sketches of economic integration with Russia. Now the acting head of the new subject of the Russian Federation has the powers of the governor and is ready to undertake large-scale changes to integrate into the Russian economy. In this sense, the machine-building forum 2022, in fact, became the first acquaintance with Tatarstan.

However, the high-ranking federal officials declared in the programme could not come to the forum. Deputy Minister of Industry and Trade of the Russian Federation Albert Karimov, State Duma Deputy and federal coordinator of the United Russia import substitution project “Choose Your Own” Sergey Morozov and head of the Industrial Development Fund Roman Petruts were not among the greeters. However, the discussion at the forum did not touch on particularly painful issues, so their absence went unnoticed.

“There is an opinion that Donbass is only about coal, Donbass is only about metallurgy. But in fact, the machine-building sector has always been one of the priorities for Donbass," Denis Pushilin said at the opening ceremony of the forum. According to him, more than 70 enterprises that have now retained their activities are ready to contribute to the machine-building industry throughout Russia. He assured that the industrial potential of Donbass will be useful for the development of the common great Homeland — Russia.

In response, Rustam Minnikhanov said that Tatarstan aims to reduce the share of raw materials industries through the development of high-tech industries. And he led the head of Donbass through the exhibition of machine-building enterprises. More than 70 companies took part in it. The national exposition was presented by the Republic of Belarus, and the regional ones — Bryansk Oblast, Penza Oblast, and Tatarstan. The Lipetsk Machine Tool Enterprise JSC, Firdavil and Company PLC, Sanda-M PLC, Meatek group of companies, Metal Cleaner PLC, Promoil PLC presented Russian equipment. The special attention of Minnikhanov and Pushilin was attracted by the machine-tool cluster of 14 enterprises of Tatarstan, which showed a completely Russian machine for the production of tweezers.

“Kazan Helicopters bought Japanese Yamazaki Mazak machines, and our milling machine coped with difficult moments," the representative of Pegas company (part of the cluster) told the guests.

Then the guests went to the plenary session. The moderator of the meeting was famous Moscow TV journalist Anton Privolnov.

Integration in clusters

Here, the acting head of the DPR announced possible scenarios of economic integration. According to him, Tatarstan and the Donetsk People's Republic can develop cooperative ties in the automotive and aircraft industries.

“The machine-building complex is ready to integrate into the chain of Tatarstan enterprises in the automotive and aviation industries," he said.

According to Pushilin, the machine-building complex of the DPR includes 72 enterprises that specialise in the production of mining equipment.

“Currently, the republic's mechanical engineering is aimed at restoration, and there is something to restore," he said. He also added that the integration of the DPR into the economic system of the Russian Federation opens up great opportunities for the realisation of industrial potential.

Today, two industrial clusters are being formed in Russia with the enterprises of the DPR. The first is with Kuzbass enterprises for the joint production of mining equipment, the second is with the Electric Apparatus Factory in Cheboksary, Pushilin said. KAMAZ, which is opening service centres in the Donbas, provides great support in restoring the economy of the republic, he noted.

Special military operation sets new tasks for defence industry

One of the central topics was the participation of defence industry enterprises in strengthening the country's defence capacities. Rustam Minnikhanov said that republican organisations are performing tasks in ensuring the security of the state.

“The ongoing special military operation poses new challenges to the defence industry. It is necessary to increase the supply of modern weapons and equipment to the troops as soon as possible," the head of the republic said.

According to him, Tatarstan machine-building shows outstripping production growth. According to the results of 10 months, the volume of shipped products in the industry exceeded 800 billion rubles, and the index of industrial production in mechanical engineering amounted to 103%. For example, the Kazan Helicopter Plant has doubled the production of helicopters — up to 110 units.

Despite that the policy of import substitution was taken many years ago, key sectors of the economy still depend on imports, which complicated the situation.

“It is necessary to focus on ensuring technological sovereignty, more active import substitution and deepening cooperation with our traditional partners from the Republic of Belarus, Kazakhstan, Turkey and others to form new logistics chains and exchange technologies," the president of Tatarstan urged.

With the departure of large foreign companies, Minnikhanov noted, niches are being freed up in the Russian market, which was used in Tatarstan. For example, KAMAZ is expanding the production of cars with a high level of localisation and is preparing to restart the production of K5 family cars next year, and the Yelabuga Automobile Plant has mastered the production of modern graders and bulldozers, increasing the use of domestic automotive components.

The aircraft industry has begun to perform tasks in terms of serial production of Tu-214 civilian passenger aircraft.

Is this import substitution?

The change in the political situation has forced the authorities to develop new measures of state support for enterprises implementing import substitution. Vyacheslav Shport, a member of the board of the Military-Industrial Commission of Russia, said that the state is increasing purchases of domestic products.

“The share of domestic products is over 61%. This is a good indicator. Out of the total volume of purchases of 2,7 trillion rubles, products worth 1,7 trillion rubles were purchased," he said.

According to 223-FZ, the share of Russian goods amounted to over 80%. Purchases were made for 9 trillion rubles, he added.

Besides, the authorities are developing the state electronic system of industry, which contains the entire range of Russian goods.

“It is aimed at ensuring that the defence industry enterprises get acquainted with the needs of the regions and find each other. Now 1,1 million positions declared by the enterprises of the Russian Federation are registered in it," Shport noted.

However, the head of the Tatarstan branch of the Union of Machine Builders of Russia, Radik Khasanov, does not agree with the rosy picture. In his opinion, public procurement under FZ-44 and 223 is being slowed down:

“There is no electronics, no hydraulics, we have to import from China. Is this import substitution? Nothing like that," Radik Khasanov lamented.