Rustam Minnikhanov: ‘If someone wants to say that Tatars love money, then we will tell them — we earn’
The rais of Tatarstan intends to raise the issue of a high key rate with the country's leadership
“It's not easy to make 5.2 trillion rubles of gross output [by the end of 2024] through own efforts. Plus 1.9 trillion rubles in taxes. If someone wants to say that Tatars love money, then we will tell them — we earn," said Rustam Minnikhanov about the republic's ability to work in the most unpredictable conditions. By the results of 2024, which became the third year since the beginning of the SVO, the republic's economy showed growth of 3.9%, and industry — by 5%, and in these two figures lies the point of the humor of the rais of the Republic of Tatarstan. This year, a high key interest rate may become a threat to economic growth, he believes. What forced entrepreneurs to leave underground “garages” and what Kazancompressormash is preparing for, which is under the external control of the Federal Property Management Agency — read in the material of Realnoe Vremya.
What was showncased to the guests from Moscow
The key economic results of Tatarstan in 2024 were summed at the reporting board of the Ministry of Economy of the Republic of Tatarstan with the participation of a wide pool of federal representatives on 21 February. According to tradition, Maxim Topilin, the chairman of the State Duma Committee on Economic Policy, arrived, and the newcomers were Maxim Kolesnikov, the first deputy minister of economic development of the Russian Federation, and Kirill Kolomiytsev, a member of the board and deputy director general of SME Corporation JSC. Russian Export Centre JSC delegated the honorary mission to Oleg Radionov, the director for the Coordination of Regional Programs, and Dmitry Korolev, and the Ministry of Industry and Trade of the Russian Federation — to the deputy director of the Department of Regional Industrial Policy.
Each of these organisations is authorised to provide state support to the regions within the framework of various federal programs. For example, the SME Corporation provides preferential loans and guarantees to entrepreneurs, REC — subsidies for the transportation of export products, FRP — preferential loans for large enterprises to launch innovative products. It is clear that a preliminary financial calculation is made before issuing each ruble, but it will not be superfluous to see the Tatarstan business in person.
Before the start, an exhibition of small and medium-sized businesses was opened in the lobby of the Volga Region Academy of Physical Education and Sports. It was opened by entrepreneurs who returned from the SVO zone. A resident of the Kukmor Industrial Park, TB-Resurs PLC, employed the first two colleagues — SVO veterans. And this year, all those who returned from the combat zone will work here — 20 participants in total, Rustam Minnikhanov was told during the tour.
The industrial park will be provided with a preferential micro-loan of 5 million rubles at 1% per annum, as well as preferential leasing at 8% per annum. At another stand, a car service was presented, which was opened by a SVO participant from another region of Tatarstan. He was assisted by the Entrepreneurship Support Fund of the Republic of Tatarstan.
Termata instead of Orlov from HMS group
The journalists were particularly interested in the stand of the HMS group, which, as you know, came under temporary management by decree of the president of the Russian Federation. However, the director general of the State Migration Service, Alexander Orlov, who was stated in the agenda, did not arrive, although he seemed to be expected anyway. Long before the start of the tour, Ilnur Sagdiev, the managing director of Kazancompressormash, could be seen circling at the entrance to the building.
However, the central place at the stand was occupied by the Naberezhnye Chelny company Termata instead of the management of the HMS. Nail Magdeev, the mayor of Naberezhnye Chelny, immediately arrived.
“What is Termata?” the correspondent of Realnoe Vremya asked the head of Naberezhnye Chelny. It turned out that a year ago, Naberezhnye Chelny entrepreneurs won a tender from Kazancompressormash for the supply of equipment for the construction of a gas turbine for the LNG plant in Ust-Luga, which is being built with the participation of HMS Group.
“We got these guys out of the garage, and now they work as residents in the Razvitie Industrial Park," Nail Magdeev said.
Later, another person from the garage business spoke at the board. The polymer processor, with the participation of state support, managed to increase its turnover to 4 billion rubles.
GRP — 5.2 trillion rubles, investments — 1.4 trillion rubles
Tatarstan's gross regional product in 2024 amounted to 5.2 trillion rubles, Deputy Prime Minister of the Republic of Tatarstan, Minister of Economy Midkhat Shagiakhmetov said in a report at a joint meeting of the operational headquarters for ensuring socio-economic stability in the republic and the board of the Ministry of Economy. The growth rate is 103.9% in comparable prices compared to the level of 2023.
Major contribution to economic growth in 2024 was provided by:
- Manufacturing industries: mechanical engineering and petrochemistry;
- implementation of large-scale infrastructure facilities, primarily in road construction, the share of which in the construction structure is 43%;
- federal and regional support measures;
- high consumer activity.
A quarter of GRP was accounted for by oil production, a fifth by manufacturing, the largest contribution to GRP growth was made by Kazan — 34.6%, Almetyevsk district — 14.4%, Naberezhnye Chelny — 9.3%, Nizhnekamsk district — 9.3%
The volume of industrial production amounted to 5.5 trillion rubles, and the industrial production index was 105%. There was a 9.7% increase in manufacturing, 17.2% in mechanical engineering, and 6.2% in petrochemistry. The share of industry in the economy of Tatarstan is 47.1%. The consumer market grew by 106.7%, and the volume of retail turnover reached 2.1 trillion rubles. The turnover of SMEs has grown to 2.8 trillion rubles. Its share is 24.2%.
Small and medium-sized businesses made a significant contribution to the development of all industries. Their turnover in 2024 exceeded 2.8 trillion rubles. The growth of the economy was also influenced by the increase in the production of goods and services by residents of special economic zones, industrial parks and priority development territories. By the results of 2024, the contribution to GRP was 7.7%, the turnover growth rate by 2023 was 128.7%, and the number of residents was 2,087. According to estimates, the volume of investments in fixed assets by the end of 2024 amounted to 1.4 trillion rubles, ensuring a growth rate of 112%.
Ilnur Sagdiyev, the managing director of Kazancompressormash, spoke about the company's future development plans, emphasising the connection with the HMS group. The financial results are impressive. By the end of the year, HMS's revenue amounted to 104 billion rubles, and KKM's — 20.6 billion rubles. According to him, the company is conducting three R&D projects worth 7.4 billion rubles, but there are difficulties due to the high cost of capital.
“We need to expand R&D support when creating new projects," he suggested.
The company is currently developing new pump models for deliveries across Russia and Belarus.
Investments will amount to 4 billion rubles by 2029. This summer, Kazancompressormash will launch a complex for testing heavy-duty compressors for large-capacity natural gas liquefaction technology worth 11.9 billion rubles.
Minnikhanov: thank you, generals of business
“It's not easy to make 5.2 trillion rubles of gross output through own efforts. Plus, 1.9 trillion rubles in taxes is a lot of work. If someone wants to say that Tatars love money, then we will tell them that we earn," Rustam Minnikhanov said in his closing remarks. “We are the largest taxpayer of the federal budget, and this is correct," he stressed, expressing gratitude to the general directors of the enterprises.
In his opinion, the high bank rate poses a major threat to economic growth and investment this year.
“We are particularly concerned about what will happen in housing construction. Yesterday [20 February — ed.], the State Council commission was held by Marat Shakirzyanovich, myself, Irek Anvarovich, the chairmen of the State Duma and State Council committees. Of course, we will raise these issues with the country's leadership.
According to him, it is necessary to maintain the level of development of the republic, to preserve our enterprises, large ones, especially SMEs. “All this will be impossible without federal and municipal support measures," he concluded.
Another problem is the shortage of personnel. In his opinion, it is necessary to look for systemic solutions.
“We can see the demographics: we will have a recession, we will have to attract serious resources from outside the country," the rais predicted.
In this sense, it is necessary to solve the housing issue, since without housing it will be difficult to attract specialists. An increase in labour productivity remains another reserve. “But it's more about robots, production automation. And this again comes down to investments. If enterprises do not make a profit, the economy will not help," concluded the rais of Tatarstan.