Issue #6/2014
D.Lovtsyus, A.Useinov, A.Pyatov
Impact of international sanctions and the policy of import substitution
Impact of international sanctions and the policy of import substitution
International sanctions against Russia's most economically developed countries of the world belong to the category of force majeure, the occurrence of which cannot be foreseen, and the expiration is dependable. What was the effect of international sanctions on entities of the Russian nanoindustry and visible whether the beneficial effect of the declared government policy of import substitution? These questions are answered by our experts.
Dmitry Lovtsyus
Deputy General Director,
Intech Analytics JSC
The very idea of import substitution in the global sense is initially correct and focused on the domestic industry development. However, there should be a well-reasoned approach to its implementation as the country should have products with at least similar characteristics to refuse from imported goods. For the industries which have counterparts or alternatives with similar characteristics, the introduction of preferences for the use of domestic equipment will spur businesses to develop production.
If we consider the vacuum industry, the situation with domestic counterparts is quite complicated. At this point, unfortunately, the existing technologies are far behind foreign ones, and it will take years to remedy the situation. It should be understood that in recent decades our overseas partners (as opposed to domestic producers) have been constantly conducting research, developing production and introducing R&D.
The Intech Analytics company supplies high-quality foreign vacuum equipment. As a key player in the vacuum market we have a large number of long-term projects, in which the use of foreign equipment without any Russian peers is included. This raises a lot of questions from our customers as the projects themselves are either approved or are at the stage of approval, and the budgetary funds have been already allocated for many of them. In order to secure the fulfilment of its obligations, our company is forced to increase the stocks of tradable goods by meeting the needs of customers for at least 6 months in advance.
If we would like commercial and public enterprises in our country to create up-to-date and reliable systems for the nuclear, aerospace and other industries, it is necessary to deliver high-quality vacuum components. At the moment, it is extremely difficult to introduce total import substitution in the vacuum industry, in our view.
Alexey Useinov
Head of Department of Research
of Physicomechanical Properties,
Technological Institute for Superhard
and Novel Carbon Materials, Ph.D.
Fortunately, the sanctions have not yet reached our activities, i.e. analytical instrumentation for the study of the relief and mechanical properties of materials. At least, neither us, nor our competitors observe any administrative or political constraints. There are no such constraints on both sides, we continue to supply our equipment to international markets including the United States and European countries, and American and European nanohardometers continue to be imported into Russia.
Nevertheless, the imposition of sanctions can still be felt indirectly, e.g. through delayed or decreased funding for the potential customers of our equipment. It is no secret that many of them are educational and research organisations that receive money from the federal budget. For our part, we try to compensate for the reduction in the number of Russian customers by increasing the share of our exported products. Given the increased dollar to rouble exchange rate, financially we are even in the win situation.
In this context, the topic of sanctions is hardly spoken in common communication. I think that the flow of information in this field abroad is much less than in our country. Therefore, when dealing with foreign partners, we feel no change associated with the strained foreign relations. At the same time, we cannot say that there is no problem at all; we confirm delays in delivery from abroad of some components. However, I do not think that this is due solely to the imposition of sanctions. Surprisingly, it has now become common thing to shelter logistical and other problems under sanctions. Unfortunately, this applies to even those who carry goods and accessories from China.
As for the import substitution, it is a very interesting and important topic. Frankly speaking, I think that such a policy needs to have been pursued since long ago irrespective of any sanctions. We inevitably have to develop our own high-tech production; everybody keeps talking about it today. Unfortunately, very often these statements, especially when they sound from high tribunes, represent third-rate populism. The actual development of high-technologies demands daily work predominantly mental. At the same time, our people are typical of a kind of laziness or even bliss preventing them from fully unlocking their potential. Therefore, the risk of losing something important, e.g. cars, clothes, shoes, food and scientific instruments should shake and make us to do it all by ourselves.
Of course, there is a belief that all Russian stuff is of poor quality. These accusations are often true. However, we continue to do the world’s best things associated with space, military and nuclear technologies considered to be highly critical for the country. Note that you would not buy such products in a flea market, and our country has raised these areas in terms of the domestic policy mobilisation.
As for our equipment, it is not only inferior but in many ways superior to the foreign peers. This is confirmed by numerous comparative tests. Very often, the superiority of a foreign device is a bubble inflated by huge investments in advertising and brand management efforts. One of the pitfalls in buying imported device is that is almost impossible to assess its real operation and the results obtained until the user buys it. It uncovers a lot of surprises. In addition, it is difficult to obtain high-quality technical support and advice on the conduct of research for a vast majority of imported equipment. In our case, there is no problem, you can always come, bring samples and personally try the device in operation.
In general, the import substitution policy should have a positive impact not only on our field – instrument engineering – but also other high-tech industries. It is a pity that it is fully not implemented yet but we are optimistic about the future.
.
Alexey Pyatov
Executive Secretary
of the Technical Committee TK 001
"Production services",
expert of NUFSO
International sanctions have no effect on fulfilling the task by the Federal Agency on Technical Regulating and Metrology (Rosstandart) before the National Union of Fire Safety Organisations (NUFSO) of production service standardisation in Russia because they require the development of a national regulatory framework.
The NUFSO plans only had to be adjusted to solve the task of the national regulatory framework in the field of production services, training of experts in standardisation, promote the importance of the work entrusted to us by the national standardisation body in all federal districts of the Russian Federation, in which our organisation has its offices.
NUFSO has not had and will not have any problems with foreign partners from both near and far abroad as political sanctions and business are two very different things. The share of services in the global gross national product is greater than 60%, so the new direction of production service standardisation in Russia is of interest to our foreign partners.
The import substitution policy in the activities of NUFSO and TK 001 "Production services" does not really matter as the basic means of ensuring production safety, the standardisation of support services to which (design, development, acceptance, installation, maintenance, technical support, dismantling and disposal of systems and components to ensure occupational safety) should be provided by our technical committee for standardisation, are created by domestic research enterprises of the engineering and design institutes in Russia. ■
Deputy General Director,
Intech Analytics JSC
The very idea of import substitution in the global sense is initially correct and focused on the domestic industry development. However, there should be a well-reasoned approach to its implementation as the country should have products with at least similar characteristics to refuse from imported goods. For the industries which have counterparts or alternatives with similar characteristics, the introduction of preferences for the use of domestic equipment will spur businesses to develop production.
If we consider the vacuum industry, the situation with domestic counterparts is quite complicated. At this point, unfortunately, the existing technologies are far behind foreign ones, and it will take years to remedy the situation. It should be understood that in recent decades our overseas partners (as opposed to domestic producers) have been constantly conducting research, developing production and introducing R&D.
The Intech Analytics company supplies high-quality foreign vacuum equipment. As a key player in the vacuum market we have a large number of long-term projects, in which the use of foreign equipment without any Russian peers is included. This raises a lot of questions from our customers as the projects themselves are either approved or are at the stage of approval, and the budgetary funds have been already allocated for many of them. In order to secure the fulfilment of its obligations, our company is forced to increase the stocks of tradable goods by meeting the needs of customers for at least 6 months in advance.
If we would like commercial and public enterprises in our country to create up-to-date and reliable systems for the nuclear, aerospace and other industries, it is necessary to deliver high-quality vacuum components. At the moment, it is extremely difficult to introduce total import substitution in the vacuum industry, in our view.
Alexey Useinov
Head of Department of Research
of Physicomechanical Properties,
Technological Institute for Superhard
and Novel Carbon Materials, Ph.D.
Fortunately, the sanctions have not yet reached our activities, i.e. analytical instrumentation for the study of the relief and mechanical properties of materials. At least, neither us, nor our competitors observe any administrative or political constraints. There are no such constraints on both sides, we continue to supply our equipment to international markets including the United States and European countries, and American and European nanohardometers continue to be imported into Russia.
Nevertheless, the imposition of sanctions can still be felt indirectly, e.g. through delayed or decreased funding for the potential customers of our equipment. It is no secret that many of them are educational and research organisations that receive money from the federal budget. For our part, we try to compensate for the reduction in the number of Russian customers by increasing the share of our exported products. Given the increased dollar to rouble exchange rate, financially we are even in the win situation.
In this context, the topic of sanctions is hardly spoken in common communication. I think that the flow of information in this field abroad is much less than in our country. Therefore, when dealing with foreign partners, we feel no change associated with the strained foreign relations. At the same time, we cannot say that there is no problem at all; we confirm delays in delivery from abroad of some components. However, I do not think that this is due solely to the imposition of sanctions. Surprisingly, it has now become common thing to shelter logistical and other problems under sanctions. Unfortunately, this applies to even those who carry goods and accessories from China.
As for the import substitution, it is a very interesting and important topic. Frankly speaking, I think that such a policy needs to have been pursued since long ago irrespective of any sanctions. We inevitably have to develop our own high-tech production; everybody keeps talking about it today. Unfortunately, very often these statements, especially when they sound from high tribunes, represent third-rate populism. The actual development of high-technologies demands daily work predominantly mental. At the same time, our people are typical of a kind of laziness or even bliss preventing them from fully unlocking their potential. Therefore, the risk of losing something important, e.g. cars, clothes, shoes, food and scientific instruments should shake and make us to do it all by ourselves.
Of course, there is a belief that all Russian stuff is of poor quality. These accusations are often true. However, we continue to do the world’s best things associated with space, military and nuclear technologies considered to be highly critical for the country. Note that you would not buy such products in a flea market, and our country has raised these areas in terms of the domestic policy mobilisation.
As for our equipment, it is not only inferior but in many ways superior to the foreign peers. This is confirmed by numerous comparative tests. Very often, the superiority of a foreign device is a bubble inflated by huge investments in advertising and brand management efforts. One of the pitfalls in buying imported device is that is almost impossible to assess its real operation and the results obtained until the user buys it. It uncovers a lot of surprises. In addition, it is difficult to obtain high-quality technical support and advice on the conduct of research for a vast majority of imported equipment. In our case, there is no problem, you can always come, bring samples and personally try the device in operation.
In general, the import substitution policy should have a positive impact not only on our field – instrument engineering – but also other high-tech industries. It is a pity that it is fully not implemented yet but we are optimistic about the future.
.
Alexey Pyatov
Executive Secretary
of the Technical Committee TK 001
"Production services",
expert of NUFSO
International sanctions have no effect on fulfilling the task by the Federal Agency on Technical Regulating and Metrology (Rosstandart) before the National Union of Fire Safety Organisations (NUFSO) of production service standardisation in Russia because they require the development of a national regulatory framework.
The NUFSO plans only had to be adjusted to solve the task of the national regulatory framework in the field of production services, training of experts in standardisation, promote the importance of the work entrusted to us by the national standardisation body in all federal districts of the Russian Federation, in which our organisation has its offices.
NUFSO has not had and will not have any problems with foreign partners from both near and far abroad as political sanctions and business are two very different things. The share of services in the global gross national product is greater than 60%, so the new direction of production service standardisation in Russia is of interest to our foreign partners.
The import substitution policy in the activities of NUFSO and TK 001 "Production services" does not really matter as the basic means of ensuring production safety, the standardisation of support services to which (design, development, acceptance, installation, maintenance, technical support, dismantling and disposal of systems and components to ensure occupational safety) should be provided by our technical committee for standardisation, are created by domestic research enterprises of the engineering and design institutes in Russia. ■
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