A socially oriented non-financial development institution and a major organizer of nationwide and international conventions; exhibitions; and business, public, youth, sporting, and cultural events.

The Roscongress Foundation is a socially oriented non-financial development institution and a major organizer of nationwide and international conventions; exhibitions; and business, public, youth, sporting, and cultural events. It was established in pursuance of a decision by the President of the Russian Federation.

The Foundation was established in 2007 with the aim of facilitating the development of Russia’s economic potential, promoting its national interests, and strengthening the country’s image. One of the roles of the Foundation is to comprehensively evaluate, analyse, and cover issues on the Russian and global economic agendas. It also offers administrative services, provides promotional support for business projects and attracting investment, helps foster social entrepreneurship and charitable initiatives.

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Infrastructure for Sustained Industrial Growth: Opportunities for Investors
16 June 2022
17:00—18:15
KEY CONCLUSIONS
Increased demand for industrial sites

We see that today there is a great demand for industrial technoparks and parks — Alexey Besprozvannykh, Deputy Minister of Industry and Trade of the Russian Federation.

There has been a very serious qualitative change in recent years, precisely in the demand for industrial real estate. […] For the first time in the history of observation, that is, for the first time in 10 years, which is the amount of time we have been doing meticulous statistics, we have seen a strong increase in occupancy. We published a fresh review named 'Industrial Parks in Russia' in spring 2022, and it showed that, for the first time, 65% of space is occupied — Denis Zhuravskiy, Chief Executive Officer, Association of Industrial Parks of Russia.

The demand for industrial ready-made space, which allows for the rapid deployment of production, will grow even larger. This is, in general, almost simple mathematics. We are sure of it. It will be mostly just to accommodate production of components and suppliers for the existing enterprises in Russia — Denis Zhuravskiy, Chief Executive Officer, Association of Industrial Parks of Russia.

ISSUES
Overcrowding of industrial parks in the future and infrastructure constraints

If there is now a trend (for industrial real estate – Ed.), this means that, in two or three years, there will simply be no available space in industrial parks. We will again have the same problem of having nothing to offer — Denis Zhuravskiy, Chief Executive Officer, Association of Industrial Parks of Russia.

It is impossible to find a ready-made site for a steel plant. It's a godsend if it's even possible to get the infrastructure built. However, most often, even if you pay a lot of money, you cannot physically bring infrastructure there. It needs hundreds of megawatts of electricity and millions of cubic metres of gas per year — Nikita Ryblenkov, Executive Director, Association of Electrometallurgical Enterprises.

As for land resources, unlike my colleague the First Deputy Minister [for Development] of the Far East [Gadzhimagomed Guseinov], I will say this. We have little land but plenty of infrastructure. The infrastructure is mainly dilapidated. Unfortunately, the previous regime did not show it any mercy. These are Soviet facilities with completely worn-out infrastructure, and many of them are out of operation — Vitaly Khotsenko, Prime Minister of the Donetsk People's Republic.

Uneven distribution and financial constraints

We understand not only the disparity of industrial parks in the regions but also the teams that manage these parks in general — Alexey Besprozvannykh, Deputy Minister of Industry and Trade of the Russian Federation.

We have an instrument for subsidizing the interest rate, and our colleagues from the Ministry of Industry and Trade have even chided us about it. Why were you campaigning for it, why is it so inactive now? We found out the reason. The reason is that, unfortunately, management companies cannot take advantage of banking products due to the lack of collateral — Denis Zhuravskiy, Chief Executive Officer, Association of Industrial Parks of Russia.

SOLUTIONS
Expansion of support measures and the introduction of industrial mortgages

We had different support instruments, and so we came up with an initiative. Initially, it came from the Moscow region, and then other regions got involved. It is called 'industrial mortgages.’ This is a working title. We have an order from the Prime Minister, and we have already submitted our documents to the government about this initiative. Today there will be a discussion within the Government, and I think that in the next few months we will have a concrete instrument — Alexey Besprozvannykh, Deputy Minister of Industry and Trade of the Russian Federation.

This year, we made provision for subsidizing interest rates because initially, the interest rate went up a lot. We promptly reviewed our policy to support business. To mitigate the increase in the key rate, we promptly launched a subsidy mechanism, and it was launched in May in both the Far East and the Arctic. We provide subsidized interest rates for investment projects — Gadzhimagomed Huseynov, First Deputy Minister of the Russian Federation for the Development of the Far East and the Arctic.

We will definitely use the same instruments that are available in Russia today. This includes the creation of a special economic zone. We plan to extend this to our entire territory, as was done with the experience of Crimea, and with the experience of the Kaliningrad region. We will definitely create a development corporation. I have already asked Kaluga region to provide us with methodological support in terms of human resources and methodology, and I have received a positive response from the regional authorities. In the near future, we will be creating an industry development fund. Two billion rubles, which is both our money and aid from the Russian Federation, will be sent to the fund in order for it to be invested in production — Vitaly Khotsenko, Prime Minister of the Donetsk People's Republic.

I think... in our large regions where there are transport and logistics centres that can also be used as hubs and processing facilities, such infrastructure needs to be created there ahead of demand. And we are now working in this direction. We have a large site, Zapadnaya, in Primorsky Krai, in the city of Vladivostok — Gadzhimagomed Huseynov, First Deputy Minister of the Russian Federation for the Development of the Far East and the Arctic.

We are generally in favour of the creation of industrial parks being seen primarily by business as a separate business, as a service — Gadzhimagomed Huseynov, First Deputy Minister of the Russian Federation for the Development of the Far East and the Arctic.

The material was prepared by the Russian news agency TASS