Posted: 07.12.2021 17:26:00

Golovchenko: product localisation needed under sanctions conditions

This statement was made by Prime Minister Roman Golovchenko during a meeting of the Presidium of the Council of Ministers

“The year 2021 has brought new problems and challenges in the form of sanctions restrictions from the West. As a result, our domestic manufacturers have faced a problem of uninterrupted provision of the necessary components and materials. These problems are solvable. At the same time, this is an additional incentive to increase localisation of domestic products, including through co-operation with partners from Russia and the EAEU member states,” the PM said.

Mr. Golovchenko added that, at the moment, localisation of complex technical products is at a low level. “The problem is rooted in the lack of a verified approach to effective technical re-equipment. Co-operation chains are underdeveloped, while the potential of private businesses is not fully utilised,” he explained.

At the same time, the PM stated that, in 2016-2020, production of import substituting products increased: from $6bn to $18bn, “During that period, the share of import substituting products in the country’s total industrial production increased from 32.4 percent to 38 percent. More than 53 percent of the manufactured import substituting products are not only used domestically, but also exported.”

Mr. Golovchenko added that the balance of foreign trade in goods – under the approved import substitution scheme – has improved by $412m over the past 5 years.