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Good afternoon, ladies and gentlemen.
This is not a political event, but it is nevertheless important by virtue of its scale and its in-depth approach to the issues that have brought us here today. This is the largest and the most representative gathering the industry has ever seen, involving 300 companies from 29 Russian regions and 19 foreign companies.
This forum encompasses nearly all the engineering segments and highlights cutting-edge technology and innovative products developed for military as well as civilian purposes. This forum has generated a lot of interest from potential investors who are eager to get involved in large and promising projects. The Russian market is primed for a major breakthrough, for healthy economic growth and modernisation.
We are convinced that Russia needs a strong and competitive engineering industry. The industry currently employs over 4 million people at more than 7,500 companies. Support for the engineering industry was one of the priorities of the anti-crisis measures adopted by the Russian government in late 2008 and 2009. In addition to targeted assistance to specific companies - large companies we consider strategically important for the national economy - we also worked to stimulate demand for specific products such as vehicles and agricultural machinery. Infrastructure projects have also created additional demand for road construction machinery as well as energy and transport equipment.
All these measures have helped Russia's engineering industry get through the crisis essentially unscathed. Engineering companies have experienced some losses, of course. All companies have, both in Russian and around the world. Still, Russian companies managed to avoid critical losses. It is important to note that the government provided assistance to both Russian and foreign companies. For example, in the auto industry we provided assistance to the assembly plants of foreign automakers in addition to Russian automakers.
The engineering industry is now rapidly recovering. The production of machinery and equipment grew 19% in the first half of this year; vehicle production went up 22.5%, while power generation equipment went up over 30%. Not a single important technology development project was cancelled during the recession.
Just a few days ago the SaM146 engine, which powers the Sukhoi Superjet 100 aircraft, received European certification. I recently visited Saturn, one of Russia's leading engine makers, where we discussed the need to promote this engine. On June 23, they received an international certificate. Customers will begin receiving their Sukhoi Superjets by the end of this year.
We are confident that Russia's aircraft industry will find a niche on the global market, and we have high hopes for the industry. We are fully aware of the current situation on the international aircraft manufacturing markets, how intense the competition is, and that most of the niches have already been filled. But we are convinced that Russia has potential in such segments as long-distance airliners and special aviation equipment, combat aircraft - a niche we certainly have a competitive edge in - and transport aircraft. In fact, some of the transport models are built only in Russia.
We believe that our future in the transport segment lies in cooperation with our Ukrainian partners. I am referring to the joint project to promote the Antonov family of aircraft.
Russia is also implementing long-term programmes in nuclear power engineering and building ships, complex naval equipment, and spacecraft. We invest in R&D, in academic projects, and in the training of engineering and technical personnel.
Profound structural changes are now underway in the national engineering industry, including the defence industry. Strong and competitive clusters are being established, and the regulatory framework for the sector is undergoing improvements.
Last year, we reduced the number of mandatory certification requirements. Previously, as much as 80% - let me repeat, 80% - of engineering products in Russia required a certificate, and obtaining one was a lengthy and costly procedure. Now the list of products has been cut by half.
But we are not stopping there. We understand that more must be done. Ideally, no more than 15% of Russian engineering products should be subject to mandatory certification.
Dozens of new technical regulations for specific products have either been adopted or are in the works. In most cases, they have been harmonised with similar EU requirements. This is incredibly complex and time-consuming work carried out by professionals. This work often goes unnoticed, but it is what creates the regulatory framework that is necessary to facilitate the industry's growth in Russia.
Finally, Russia is setting up more and more sites for innovative production facilities, such as special economic zones, industrial parks, and regional industrial hubs like the ones in Kaluga, Lipetsk, Tomsk, Tatarstan, and other regions. These projects are gaining momentum; many of them are already entering the commercial production phase.
Investors enjoy many benefits in these locations, including convenient logistics, all the necessary infrastructure and communications, as well as tax breaks and preferential customs duties granted by federal and regional authorities.
The future of Russian engineering cannot be considered independent of global trends. We need effective models of technological and industrial cooperation, and we need to attract promising foreign partners who can generate new ideas and share their experience of founding high-tech companies.
Foreign companies are enjoying success in Russia, both independently and through joint ventures. These include Siemens, Volkswagen, Renault, Fiat, Peugeot Citroen, Hyundai, Magna, Toyota and other auto giants.
There are representatives of foreign engineering firms in this audience. We are especially interested in your opinion of the industry's progress in Russia. We are also interested in your experience and your views on other factors that may be holding the industry back.
I expect that we will have an opportunity to discuss this all in greater detail. I wish you all success, and I thank you for your attendance.
Thank you very much.
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