Global Trade Alert

The Strategy of the power machine building for 2010-2020 and up to 2030 for the Russian Federation was developed in 2011. The sector of power machine building conductsdesigning, production and maintenance for the equipment for transformation energy from organic and non-organic (nuclear) fuel., hydro-energy and the energy of non-traditional sources into heat or mechanical energy to produce electricity.
The strategy emphasizes the importance of electro-energy sector for the Russian economy and nation which serves as a basis for the sustainable economic development of the country. Therefore, the creation of the power machines is viewed by the strategy as crucial. Thus, the strategy also list 5 problems of the sector which need to be solved. For example, about 60 percent of all the equipment in that sector should be depreciated but this equipment is still functioning. The share of the import equipment in the industry is more than 80 percent. The productivity of the Russian equipment is significantly lower its imported analogues due to the large scientific research gap created during the post soviet transformation times.
The strategy emphasizes the extreme necessity of the revival of the scientific school which would design this equipment because the current state of art does not reflect the interests of the national security of the country. This strategy was developed based on the Government Decree from 13 November 2009 #1715-p. It also goes in line with the Long-Term Concept of the socio-economic development of the Russian Federation up to 2020.
The goal of the announced strategy is to increase the global competitiveness of the Russian power machine building. The following issues have to be solved:

• improvement of the scientific conditions for the development of the industry
• creation of the infrastructure
• creation of the network of the research centers
• localization of the production of this equipment at the territory of Russia
• creation and development of energy saving mechanisms
• training of the staff in the industry
• improvement of the legal background the industry works in
• others

 
The following measures will be taken to solve those issues:

1. Increase of the efficiency of the customs-tariff regulation, including the corrections of the import tariffs on the power machines the analogues of which will be produced in Russia
2. Tax incentives
3. Government financial support
4. Public-private partnership
5. Export support (subsidies)

 
The benchmarks of the programme are the following:
By 2030 the share of the imported equipment should shrank to the level of 10-15 percent (from current 80 percent). The volume of exports of the Russian power machines will be substantially increased. The government expects that the Russian power machines will occupy 15 percent of the world market by 2030.