UPDATE3: Minister: Russia’s industrial production may fall 3.3% in 2015

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MOSCOW, Dec 29 (PRIME) -- Russia’s industrial production will decrease 3.3% in 2015, Industry and Trade Minister Denis Manturov said in an interview with Rossiya 24 TV channel on Tuesday.

“If we are talking about final figures, of course we will do it after receiving all statistics by mid-January… But preliminarily we can say that industry in general will fall by 3.3%. As for manufacturing industries, a little bit more, (down) about 5%,” he said.

According to the Federal State Statistics Service, Russia’s industrial output decreased 3.5% on the year in November and contracted 3.3% on the year in January–November. Mineral resources production fell 0.1% on the year in November, the manufacturing industry output went down 5.3%, and production and distribution of power, gas and water decreased 3.5% in the period.

PHARMA OUTPERFORMING

Russia’s pharmaceutical production rose by about 12% and the chemical industry increased by 7% from January 1, Manturov also said.

The share of national producers on the pharmaceuticals market increased 4 percentage points to 27% in the period.

“As for vital essential and necessary drugs, about 71% is produced by our, Russian producers. About 20 medicines received registration certificates of the Healthcare Ministry for sale of these products, primarily by state procurement. And we expect that this trend will continue in the future with the help of new innovative drug production,” the minister said.

At present, the list of vital essential and necessary drugs includes 608 medicines, 282 of which are produced by two or more Russian companies.

ANTI-CRISIS PLAN FULFILLED

The 2015 plan of support to the Russian industry amid the crisis is fulfilled, Manturov said.

“As for the measures under the anti-crisis plan, for implementation of which the Industry and Trade Ministry is responsible, everything is fulfilled. This plan was aimed at supporting the producing economy, the national industry, its branches,” he said.

Many companies had a chance to boost working capital by taking loans at subsidized rates, Manturov said, adding that the plan also envisaged a ban on state procurement of imported products, which was also adopted.

The prolongation of anti-Russian sanctions by the EU will not put the industry under additional pressure.

“Our industry has adapted. As for the remaining difficulties, of course, it is access to financial markets. But in line with this we have to get used to lending in rubles. Yes, it is expensive, but we have state support aimed at compensating interest rates of loans, project financing, we are launching a mechanism of beneficial leasing of technological equipment,” the minister said.

“Always depending on Western markets and situations which our Western partners create for us is definitely pointless.”

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