Increased demand for industrial sites
"We
see that today there is a great demand for industrial technoparks and parks,”
said 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,”
said Denis Zhuravsky, Executive Director of the Association of Industrial
Parks.
"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,” said Denis Zhuravsky, Executive Director of the Association of
Industrial Parks.
PROBLEMS
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,” said Denis Zhuravsky, Executive Director of the Association of
Industrial Parks.
“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,” said Nikita Ryblenkov, Executive Director of the 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,” said Vitaliy 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,” said 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,” said Denis Zhuravsky,
Executive Director of the Association of Industrial Parks.
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,” said 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,” said
Gadzhimagomed Guseinov, 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,” said Vitaliy 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,” said Gadzhimagomed Guseinov, 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,” said Gadzhimagomed
Guseinov, First Deputy Minister of the Russian Federation for the Development
of the Far East and the Arctic.
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