Industry balance: the government noted the need for innovation in industry
Russia does not need conventional efficiency measures, but rather new, innovation-based approaches to the development of the industrial sector. This was stated by Russian Prime Minister Mikhail Mishustin at a meeting with the head of the Industrial Development Fund Roman Petrucey. Izvestia investigated the current state of the industry against the background of sanctions and what support measures it needs.
Technological sovereignty
Over a decade of active activity, the FRP has become the most important mechanism for supporting the domestic industry, Roman Petrutsa, director of the Industrial Development Fund, told Izvestia. The organization provides companies with access to long-term and affordable financing, which makes it possible to launch new production sites and produce modern, competitive, import-substituting products that simultaneously contribute to the country's economic growth and raise the standard of living of the population.
"Thus, thanks to loans from the Federal Reserve Fund, modern machines and equipment have been produced in Russia, and production of railway, automotive and special equipment, automotive components, medicines, microelectronics, and everything else that is extremely necessary to achieve technological sovereignty,— said Roman Petrutsa.
During its activity, the Industrial Development Fund has provided over 2,000 concessional loans worth about 700 billion rubles. Already every third ruble has returned back to the organization, which made it possible to launch the third investment cycle. At the same time, the fund has about a thousand established or modernized production facilities, and about half of the projects have reached serial production.
The plans for 2025 include the launch of approximately 300 new initiatives, which exceeds the average of previous periods. At the same time, the share of distressed assets in the fund's portfolio is only about 1%. As a result, the total contribution to the economy is expressed in private investments at the level of half a trillion rubles and tax revenues of about 300 billion.
Assistance to companies
Mikhail Mishustin has already drawn attention to the fact that industrial production in Russia continues to grow, although its pace has become more restrained. According to the prime minister, this slowdown is due to the need to maintain a balance of macroeconomic indicators in order to avoid overheating of the economy and keep inflation under control. The head of government also noted that the manufacturing sector is expected to grow by about 3% in 2025, compared with 8.5% a year earlier.
After the events of the 1990s, Russia's industrial sector found itself in a difficult situation, Maxim Chirkov, associate professor at the Department of Economic Policy and Economic Measurements at the Institute of Economics and Finance at the State University of Management, told Izvestia. However, in recent years, significant positive developments have been noticeable: domestic enterprises are strengthening their positions in the market. One of the factors contributing to this growth has been the sanctions policy, which increases costs for Western companies and reduces their competitive advantages, which indirectly contributes to the development of the Russian industry.
— There is a certain difficulty with technology, which the government is dealing with, in particular, by stimulating the creation of a more innovative economy. Prime Minister Mishustin is doing very well here. In particular, specialized sessions are held," the expert noted. — I think that, of course, there will be successes here, because there is an incentive for Russian companies and additional government incentives. In other words, the prospects for both light and heavy Russian industry are very good.
According to Rosstat, industrial production in Russia increased by 4.6% in 2024. This result exceeded the benchmarks that the Ministry of Economic Development had previously set in the forecast of socio-economic development. At the same time, in 2023, the growth rate was 4.3%, which is 0.2 percentage points higher than the previous estimate adjusted by the statistical office in February. In December 2024, the pace of industrial dynamics accelerated markedly, reaching 8.2% year-on-year after November's 3.5%.
The press service of the Ministry of Industry and Trade previously explained that the high performance in developing industries is largely due to the accumulated effect of the accelerated pace of previous periods, as well as the traditional increase in output by the end of the year, including to fulfill obligations under already concluded contracts. The Ministry also noted that the industries responsible for ensuring national security made a significant contribution to the final results.
Maxim Chirkov believes that the essence of state support measures is targeted stimulation of individual industries, expansion of educational opportunities and financing of specific projects through a subsidy system. At the same time, he stressed that there are different levels of assistance tools, both national and regional, aimed at developing diverse segments of the manufacturing sector.
— Government spending is growing, and in general, this is also a support for industry, and it can be strengthened. These measures are common to many countries that have the resources and capabilities. The opportunities to support innovation in Russia are very good now, so there is no doubt about the prospects," he said.
The government already supports the Russian industry in various ways: through financial instruments, including subsidies, soft loans and grants from the Industrial Development Fund. Also through tax preferences, such as reduced rates and VAT exemption, as well as through non—material measures such as information and consulting support, provision of property and participation in public procurement. Among the specific measures are industrial mortgages, programs to support import substitution and innovation initiatives, as well as individual projects for small and medium-sized businesses, including, for example, "Own business" for veterans of their military.
The Ministry of Energy previously raised the forecast for industrial production growth in Russia, while lowering expectations for investment growth in fixed assets. The Ministry of Economic Development has sent to the government a draft scenario conditions for the forecast of socio-economic development for 2025-2028. According to the ministry's forecast, industrial production will grow by 2.9% in 2026, 2.8% in 2027, and 2.8% in 2028. At the same time, manufacturing industry growth is expected to reach 4.3% in 2025, 3.4% in 2026, 3.6% in 2027 and 3.6% in 2028. The investment forecast provides for an increase of 3.0% in 2026, 3.3% in 2027 and 3.7% in 2028.
Izvestia sent a request to the Ministry of Industry and Trade, but no response had been received at the time of publication.
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