15.04.2022, 10:13
The Problem with Nails in Russia Explained by Industrial Policy
Source: OREANDA-NEWS
OREANDA-NEWS Production of nails in Russia is currently unprofitable because of the current industrial policy and in order to develop it it is necessary to solve structural problems. This was stated by Boris Titov, presidential commissioner for the protection of entrepreneurs' rights.
Titov explained that handing out tasks to businesses to immediately begin producing nails won't work; the situation with taxes, the administrative burden, the tariffs of infrastructure monopolies, and other nuances must be corrected. Only when the balance of costs and benefits is adequate will it be more profitable to produce nails in Russia than to bring them in from China. And in the current situation Chinese companies produce goods for Russia out of Russian metal.
Titov reminded us that his office raised this problem a couple of years ago. At that time, statistics were given that from 2015 to 2019, imports of nails to Russia increased by 3.64 percent, while exports fell by 43.31 percent. In absolute terms, the country buys three times more nails than it sells.
The Ministry of Industry and Trade previously stated that nails are produced in sufficient quantities in Russia, besides the demand for them has been falling in recent years.
Titov explained that handing out tasks to businesses to immediately begin producing nails won't work; the situation with taxes, the administrative burden, the tariffs of infrastructure monopolies, and other nuances must be corrected. Only when the balance of costs and benefits is adequate will it be more profitable to produce nails in Russia than to bring them in from China. And in the current situation Chinese companies produce goods for Russia out of Russian metal.
Titov reminded us that his office raised this problem a couple of years ago. At that time, statistics were given that from 2015 to 2019, imports of nails to Russia increased by 3.64 percent, while exports fell by 43.31 percent. In absolute terms, the country buys three times more nails than it sells.
The Ministry of Industry and Trade previously stated that nails are produced in sufficient quantities in Russia, besides the demand for them has been falling in recent years.
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