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Where will the 15 billion rubles allocated for the revival of the Russian auto industry go?

  • December 4, 2023
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The Russian government allocates 15 billion rubles to finance the production of car parts. Can this move be seen as an attempt to finally stage a technological breakthrough

Where will the 15 billion rubles allocated for the revival of the Russian auto industry go?
The Russian government allocates 15 billion rubles to finance the production of car parts. Can this move be seen as an attempt to finally stage a technological breakthrough for our neglected automotive industry? The AutoVzglyad portal shares its doubts.

Of course, better late than never. But is it really possible that the problems of our technological lag in the automotive industry will finally receive attention at the top of the government? Have Mr. Manturov’s soothing speeches in the spirit of “everything is fine, beautiful Marchioness” lost their soothing effect?

Will the auto industry bounce back?

The Interfax agency quotes Prime Minister Mikhail Mishustin: “To ensure the uninterrupted operation of conveyor belts, it is necessary to localize the production of the largest possible number of automotive parts in the country – we have talked about this several times, including during our strategic sessions. The government will allocate another 15 billion rubles to the Industrial Development Fund (IDF). Grants will be used to finance at least ten key projects, including the organization of series production of anti-lock braking systems and passive safety elements.”

The fact that the production of auto parts in Russia, especially in the field of high technology and electronics, is at an unacceptably low level is beyond doubt even among non-specialists. Likewise, it is no secret to anyone that the country’s leaders have already made serious attempts to transfer the production of components to Russian territory. Unfortunately they were not successful.

Suffice it to recall, for example, the epic with localization, which took place in much calmer times. Thanks to the efforts of unidentified characters who were completely uninterested in the implementation of the state program, it turned into a complete fraud, which immediately became apparent after the introduction of sanctions against our country by foreign suppliers.

“Are you not above the abyss,

At the height, with an iron bridle

Has Russia educated itself?

Therapy, not resuscitation

No, no one will put Russia on its hind legs, even within the narrow confines of its car industry. As far as the Head of Government can understand, the allocation of 15 billion is not related to pioneering actions aimed at reviving the auto parts industry.

We are only talking about therapy: continuing to support companies despite external constraints. And the amount allocated is not that large: about $160 million at the current exchange rate. That’s pretty good for a single production, but not enough to support economic policy at the scale of an entire sub-industry.

And let us remind you that this is not the first money aimed at developing domestic production of components. By 2022, 45.2 billion had already been allocated for the implementation of the program, and among the borrowers were mainly AVTOVAZ, KamAZ and the Ural car plant. It is possible that the results of its use are not zero, but the general public does not know about any technological breakthroughs achieved thanks to preferential loans received from the Federal Investment Fund.

I really want the current 15 billion not to disappear into oblivion, but to deliver real returns. And to do this, you need to solve a three-fold task: allocate enough money, set clear goals and monitor their implementation. And yes, it is necessary to appoint an official who will have full responsibility for the implementation of the program and who will be held accountable to the fullest extent if it fails.

Photo globallookpress.com
Photo globallookpress.com

Of course, better late than never. But is it really possible that the problems of our technological lag in the automotive industry will finally receive attention at the top of the government? Have Mr. Manturov’s soothing speeches in the spirit of “everything is fine, beautiful Marchioness” lost their soothing effect?

Will the auto industry bounce back?

The Interfax agency quotes Prime Minister Mikhail Mishustin: “To ensure the uninterrupted operation of conveyor belts, it is necessary to localize the production of the largest possible number of automotive parts in the country – we have talked about this several times, including during our strategic sessions. The government will allocate another 15 billion rubles to the Industrial Development Fund (IDF). Grants will be used to finance at least ten key projects, including the organization of series production of anti-lock braking systems and passive safety elements.”

The fact that the production of auto parts in Russia, especially in the field of high technology and electronics, is at an unacceptably low level is beyond doubt even among non-specialists. Likewise, it is no secret to anyone that the country’s leaders have already made serious attempts to transfer the production of components to Russian territory. Unfortunately they were not successful.

Suffice it to recall, for example, the epic with localization, which took place in much calmer times. Thanks to the efforts of unidentified characters who were completely uninterested in the implementation of the state program, it turned into a complete fraud, which immediately became apparent after the introduction of sanctions against our country by foreign suppliers.

“Are you not above the abyss,

At the height, with an iron bridle

Has Russia educated itself?

Therapy, not resuscitation

No, no one will put Russia on its hind legs, even within the narrow confines of its car industry. As far as the Head of Government can understand, the allocation of 15 billion is not related to pioneering actions aimed at reviving the auto parts industry.

We are only talking about therapy: continuing to support companies despite external constraints. And the amount allocated is not that large: about $160 million at the current exchange rate. That’s pretty good for a single production, but not enough to support economic policy at the scale of an entire sub-industry.

And let us remind you that this is not the first money aimed at developing domestic production of components. By 2022, 45.2 billion had already been allocated for the implementation of the program, and among the borrowers were mainly AVTOVAZ, KamAZ and the Ural car plant. It is possible that the results of its use are not zero, but the general public does not know about any technological breakthroughs achieved thanks to preferential loans received from the Federal Investment Fund.

I really want the current 15 billion not to disappear into oblivion, but to generate real returns. And to do this, you need to solve a three-fold task: allocate enough money, set clear goals and monitor their implementation. And yes, it is necessary to appoint an official who will have full responsibility for the implementation of the program and who will be held accountable to the fullest extent if it fails.

Source: Avto Vzglyad

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