With the support of The Military-Industrial Commission under the Government of the Russian Federation

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Results of the Second Day of Forum Engineering Technologies 2014

A plenary session entitled “Cooperation and/or Import Substitution” was held

7,500 people took part in the second day of the forum

Representatives of federal jurisdictions, management and specialists from mechanical engineering enterprises and scientific, educational and expert organisations, as well as journalists from leading news media attended the second day of the Engineering Technologies 2014 Forum. In addition to participating in the intensive business program, attendees at the event were able to see samples of weapons and military equipment as well as dual-use and non-military equipment.

Business Program

The “Cooperation and/or Import Substitution” plenary session became a key event at the Engineering Technologies 2014 Forum..

Forum attendees expressed various points of view about the problem of import substitution and how to maintain cooperative relationships. However, the common thread was the idea that the Russian economy, especially the machine-building sector, needs to make a great leap forward and that reliance on the domestic market will help strengthen companies in the industry. In its turn, the state is ready to support upgrades to the industry, using all measures of tariff and non-tariff regulation which it has at its disposal.

Opening the discussion, Dmitry Rogozin, the Deputy Prime Minister of the Russian Federation, drew everyone's attention to the fact that merely discussing the topic of import substitution is in no way an attempt to pull down the iron curtain. The change in the development thrust to, above all, place a bet on Russia's internal resources is a tool for increasing the scale of production and the market share of domestic producers.

The Deputy Prime Minister gave special emphasis to the fact that the economic sanctions imposed on Russian enterprises, despite being declared temporary, will most likely turn out to be long-term. However, in its own turn, a bet on internal strength will not become a local campaign; this is a long-term trend and an important element of public policy.

Mr. Rogozin reminded everyone that the Government has adopted a programme of import substitution, has approved a timeline of events, and has drawn up detailed road maps for a number of items. The task of mastering the entire nomenclature of parts and hardware components for the production of arms and military equipment will be completely resolved within 2.5-3 years. He also stressed that the Russian Federation has all the necessary resources to fulfil its plans.

Continuing the discussion, the Deputy Minister of Industry and Trade of the Russian Federation, Yury Slusar, told about the tools that his department intends to apply to stimulate tariff growth. In particular, he referred to increasing customs duties on a number of end products to values consistent with those of the WTO. There are plans to minimize customs barriers on imports of raw materials and equipment. The Ministry of Industry and Trade will prepare relevant proposals in early 2015.

In a number of industries, the introduction of strict measures to protect the market is a possibility, even including the import prohibition or restrictions placed on certain types of products which are similar to those produced in Russia. Moreover, domestic producers will be given preference, both in terms of tax incentives and concessional lending, to subsidize expenses on research and development and technical rearmament. He added that priority will be given to domestic producers in those sectors where the state is the driver and buying up a significant amount of total production.

The round table “Integrated Structures of the Domestic Military-Industrial Complex: Demands and Development Strategies” was held as part of the business program at the Engineering Technologies 2014 Forum.

The round table's main topics were questions about the import independence of Russian industry and the presentation of Radio-Electronic Technologies Concern's (KRET) new development strategy, which will enable it to compete successfully on the international market. Andrey Tyulin—Deputy Director General of KRET, Mikhail Grigoriev—company partner at Strategy Partners, and Oleg Bochkarev—the Deputy Chairman of the Military-Industrial Commission under the Government of the Russian Federation, spoke at the event. Maxim Kuziuk, Director General of Aviation Equipment holding company, took part in the discussion.

On August 14, an extended meeting of the Russian Engineering Union's Aviation Industry Committee also took place. The meeting was about improving statutory regulations in the aviation industry.

The “Engineering in Machine Building: Opportunities and Implementation” conference continued its work. A key theme of the event's second section was the use of additive technologies in mechanical engineering.

Agreement Signing

The Engineering Technologies 2014 Forum is a platform for entering into mutually beneficial contracts in various spheres of engineering activities. Several documents were signed during the forum's second day.

The Russian Helicopters holding company and United Aircraft Corporation OJSC signed a memorandum of understanding for the development and support of the ICOP (Industry Control Other Party) plan in Russia.

United Engine Corporation and Chinese company Harbin Guanghan Gas Turbine Co. Ltd. signed a cooperation agreement regarding the conversion of aircraft engines. The implementation of the agreement involves the parties collaborating in the conversion of aircraft engines, such as D-30KU/KP, and industrial gas turbine engines; the search for opportunities to sell them in China is also part of the agreement.

United Instrument Corporation and Machine Engineering Technologies will create joint projects to manufacture high-tech products. Communications facilities and systems, telecommunications equipment, and automated management systems have been identified as potential areas for cooperation.

Radio-Electronic Technologies Concern (KRET) and Ural Works of Civil Aviation signed a cooperation agreement for the development and manufacture of a range of prospective on-board radio-electronic equipment for small aircraft, which takes the domestic and international requirements for certification and air navigation into account.

KRET and Kazan (Volga region) Federal University also signed an agreement on cooperation and collaboration. Among the objectives of the agreement is the training of specialists, their retraining, advanced training, and the development of innovative technologies. In turn, KRET will facilitate the creation of laboratories and departments at the University for conducting research, as well as locating their branches at KRET.

Novikombank, a strategic partner of the Engineering Technologies Forum, and Techmash Scientific and Production Concern OJSC signed a cooperation agreement. In accordance with the agreement, Novikombank will provide Techmash with comprehensive banking services and financing for development programmes, which will allow Techmash to attract lending resources to finance their business activities and export contracts on beneficial terms.

Another agreement was signed between Novikombank and Stankoprom OJSC. By its terms, the bank will provide loans through investment programmes to enable the production of modern machine-tool equipment, the development and implementation of new technologies, and the development of the holding company's scientific and production potential.

Novikombank and United Instrument Corporation OJSC signed a cooperation agreement. The document stipulates that Novikombank will develop a system of international and domestic payments and implement advanced financial management technologies at United Instrument Corporation.

Second Day Statistics

The second day of the Engineering Technologies 2014 Forum brought together 7,500 attendees: speakers, Business Program delegates, exhibitors and business visitors. Forum attendees left over 2,900 automobiles on parking lots organized at the Gromov Flight Research Institute.

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