Putin will discuss with the Cabinet’s anti-crisis measures to support individual sectors of the economy

MOSCOW, January 27. The President of Russia Vladimir Putin will gather the Cabinet Ministers to decide how to support during the crisis, some sectors of the domestic industry.

According to the press service of the Kremlin, “as the main at the meeting will consider the implementation of measures to support individual sectors of the economy, such as transportation engineering, civil construction, automobile and light industry”. In the message to the Federal Assembly in December 2015 Putin noted that several sectors of the Russian economy are construction, automotive, light industry and railway engineering – was at risk.

Now the government is finalizing updated anti-crisis plan that takes into account falling oil prices. On Monday Prime Minister Dmitry Medvedev instructed his subordinates to prepare a document before 1 February. In his opinion, “it is important to consolidate the positive changes that were achieved in the economy last year, to maintain financing of priority sectors, which should subsequently be the basis for economic growth, to concentrate resources in those sectors where there is high potential both from the point of impact on the economy in General, and import substitution”. Among these sectors he mentioned the automotive industry and agricultural engineering.

Deputy Prime Minister Arkady Dvorkovich on Tuesday told journalists that the provisional amount on the maintenance of priority branches of economy in 2016 is estimated at 100 billion rubles “We have already talked about what the industry will be the focus for state support this year in addition to what we have done in the past. It’s automotive, transport machinery, light industry and construction. So far, the total amount the government is estimated at 100 billion rubles,” said Dvorkovich. According to him, the marked sector is not the final list of the programs of state support. So, traditionally, the state is agriculture, gave the example of Deputy Prime Minister.

In addition, the list of orders of Putin on the implementation of the provisions of the address States that the government has until March 31 to provide capitalization of the Fund of development of the industry in 2016 is 20 billion rubles. “To ensure the recapitalization of the industry development Fund in the amount of 20 billion rubles at the expense of funds stipulated in the Federal budget for 2016 on the implementation of additional measures to support sectors of the economy”, – the document says. The industry development Fund provides concessional financing terms of the projects in the field of industry (loans with 5% interest rate for up to 7 years in volume from 50 million to 700 million rubles) for development of competitive new industries.

Tuesday, meeting with Minister of economic development Alexei Ulyukayev, the President said that in Russia there are conditions for this year has begun to remedy the situation in the economy. In his estimation, “the combination of the budget deficit, which was smaller than expected, good reserves, low debt levels – all this creates favorable conditions in order to count on the situation in the current year”. Ulyukayev confirmed that the reserves of the Bank of Russia remained at a high level. “All this has created a situation of macroeconomic stability, which properly assess all market participants,” – said the Minister. He also believes that the deepest part of the crisis was completed by the end of the second quarter of last year, after which there has been movement in a positive direction.