Russian companies borrowing western competitors vacated premises, says Putin
The provision of replacement goods and services in the wake of ‘transnational corporations that have left the Russian market’ has become a ‘powerful incentive’ for Russia’s domestic companies, some of which are ‘borrowing vacated production facilities and sites in shopping centres.’
So said Vladimir Putin, addressing the St Petersburg International Economic Forum last week.
The Russian president said that ‘Many of the products that had been hitherto manufactured in Russia’ were already ‘Russian goods’, and that from now on, ‘the profit from this business remains in our country. We will work for the new Russian owners, help them ensure the income of employees of their enterprises, as well as subcontractors and contractors.’
Putin said that the departure of foreign retailers had ‘freed up to two million square meters of retail space and a niche of two trillion roubles,’ and suggested that ‘wandering’ foreign companies should not be allowed back into the market. But he later added, ‘If foreign manufacturers will want to come back again…we do not close the doors to anyone.’
Outlining various macro-economic success stories and government initiatives, the president’s assessment of Russia’s economic fortunes was upbeat:
‘Overall, exports of goods hit a ten-year high in 2022 at US$592 billion, with non-commodity, non-energy exports accounting for almost a third of this amount at US$188 billion. This figure supports 6.4 million jobs and generated 2.2 trillion roubles in tax revenue paid to the country’s consolidated budget,’ while agricultural exports, he said, ‘reached a new high of over US$41 billion.’
He said that a $22bn trade surplus for the first four months of 2023 would be ‘an asset for developing the Russian economy, including for importing cutting-edge equipment, technology, components and material,’ adding that he ‘would like the Government and the Bank of Russia to come up with specific proposals regarding the use of the proceeds from high exports to stimulate and expand investment in large and systemically important projects in infrastructure, logistics, and land development.’
