Russian Government plan to increase non-fuel exports
Finance Minister Siluanov visited the Samsung Electronics Plant in Kaluga Region on April 12. His mission was to assess how the national project for the development of exports is progressing. This plan excludes hydrocarbons since Russia has no difficulty selling those. He was there with bureaucrats from the Russian Export Center. Siluanov spoke to L'Oreal, Nestle, Cargill, Henkel, Volkswagen, Continental and other companies. Siluanov assured his hearers that he would relax rules on currency repatriation. Fines are 100% and they will be cut to around 4% and phased out by 2024. Believe it when you see it!The government is parleying with major exporters. Moscow is eager to shift away from overdependence on hydrocarbons. Russia cannot control the world price and the world is shifting to renewables. The government does not want Western companies to withdraw form Russia and fears that some of these foreign companies might pull out. Multinationals have a lot of leverage. The national project has a USD 14.8 billion price tag. About 50% of this is to support exports. The government is using corporate programs to make the country competitive. Concessional loans will be supported by the government from next year.