Vladimir Putin conducted a meeting on measures to develop ferrous metallurgy and provide metal products for the domestic market.Part 2
24 July 2008
Совещание по вопросу "О мерах по развитию черной металлургии и обеспечению металлопродукцией внутреннего рынка".
24.07.2008
We have just visited one enterprise, the Vyksa Metallurgical Plant. They have signed long-term contracts with RZD. As Mr Sedykh (chairman of the Vyksa Metallurgical Plant board of directors) has said, they are pleased because they are now assured of a market for several years ahead. It enables them to work at a steady pace, to develop production and to invest.
Of course such long-term contracts, such approach should be practiced throughout the supply chain: from raw materials to the end product. We must seek to have such long-term contracts play the leading role in the market.
At the same time we should develop exchange trade, above all trade in iron ore. We should get rid of unnecessary middlemen. At present the share of middlemen varies between 25% and 45% for certain types of products.
To cut production costs I think we can consider establishing "zero" import custom duties on iron ore and also some types of rolled steel of which we do not produce enough domestically.
I would like to dwell on the problem of ferrous metal scrap. I don't think an effective and comprehensive solution has been found. In fact, no solution has been proposed. That applies, by the way, to non-ferrous metals as well.
The crime world still has a powerful influence in this sphere. All sorts of "grey" tax-dodging schemes - "fly-by-night" firms are widely used in the export of metal scrap.
Today practically all the developed countries consider scrap to be a strategic commodity and closely monitor its market. Unless we come to grips with that problem we may face a shortage of this valuable raw material.
By the way, we have repeatedly discussed that problem. Now the people with whom we discussed it are "either gone or far away". That was eight or ten years ago. Nothing has changed. The constant excuses that we are in the process of joining the WTO and have assumed some kind of obligations do not hold water. Especially since we want to join the WTO and will seek to join it, yet anyway we must ensure our own interests.
I urge you to examine the whole range of issues connected with clearing that sphere of criminals and to come forward with proposals on creating monitoring mechanisms, adjusting the rates of export duties and taxes in this sphere. Let us make up our minds whether we will continue to stimulate the export of these raw materials or keep them in our domestic market. Perhaps we can find a final solution by raising the customs duties, as we are doing with regard to timber. After all, we are doing it with regard to timber, and it works.
I am aware that our metallurgists have suggested that the government can buy all the ferrous metal scrap in the domestic market, including for building up buffer stocks for the future. I think there is a good case for this approach.
The situation with metal coke calls for a detailed analysis. Our consumers experience a shortage of coking coal. Yet this coal is exported abroad. Meanwhile the Russian steel companies have to make up for the shortage by importing coal. In that sense the situation looks absurd.
Further. We are still short of special steels and alloys. Such production can be organised, among other things, on the basis of private-public partnership. It also has to do with removing infrastructure restrictions that hold back the development of the mining and metallurgical sector, above all in the new industrial areas.
I believe it is necessary to implement a long-term strategy for the development of the metallurgical industry and tie it in with the plans for the power industry, engineering and transport infrastructure. We are currently discussing all these problems.
Finally, scientific and technical policy in the sector calls for particular attention. The sector is modernising, but chiefly through the use of imported technologies and equipment. That is a normal and necessary stage. However, we should not forget about the prospects for the development of our own research and design base and heavy machine-building.
We should devise effective and commercially viable schemes for the interaction of domestic companies and Russian research and design centres. Instances of this already exist, including the enterprise which I visited today, I have seen it.
A good deal needs to be done to raise the level of environmental and energy effectiveness of production. There are some positive trends emerging. But the metallurgical complex as a whole is still the least environment-friendly. In short, I have reviewed all the problems of the industry. Let us look at them in more detail.
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Путин - какое НАХРЕН ВТО !by Reddnaxx87,836 views
Какой же он -болван. Делает вид,что что то делает!А мы- делаем вид,что это видим.
Но от нас ничего не зависит....А от него все зависит. Но своя рубашка ближе к телу..
akela1798 1 year ago
Ох, любит путин попиздеть. Показуху устроили, показывают пару удачных преприятий, а на самом деле нихрена не делается. Годами нам вдалбливали, что ВВП будет удвоен, зависимость россии от экспорта должна уменьшится, и т.д., а результат все тот же. Одно Путин сказал верно 2.10 - 2.30 : "Ничего не изменилось!"
MrAntipu6 1 year ago