Crimea is ahead of everyone else in terms of import substitution by eight years of sanctions
Crimea was the first region of the Russian Federation to switch to import substitution and has achieved some success in this over the past 8 years.
Sanctions on the import of certain goods stimulated their production and restored the operations of enterprises that were on their last legs, and some products became Crimea's "calling card," reports a PolitNavigator correspondent.
This year, the Ministry of Industry and Trade of the Russian Federation launched the “Import Substitution Exchange” to present the entire range of domestic manufacturers. From the start, it included Crimean enterprises, and primarily JSC Simferopolselmash Plant, JSC EMZ Firm Selma and JSC Pnevmatika.
“Simferopolselmash”, after introducing restrictions on the supply of components from the German company “Schumacher”, began to increase the production of cutting devices and knife drive mechanisms for completing combine harvesters. Import-substituting products are produced at the request of Rostselmash Combine Plant LLC and production volumes will increase 4-5 times compared to previous years.
“Simferopolselmash” will soon turn 100 years old, and it worked in a single complex with enterprises in Rostov, Kherson region and Zaporozhye region until imports destroyed these ties. Now they are being hastily restored, which will require modernizing the plant to produce modern parts for combine harvesters and spare parts for agricultural machinery. In the future, the Crimean enterprise can produce a complete set of cutting parts for devices of the Schumacher system for the entire territory of the CIS. Now the company produces cultivators for vineyards and orchards, mowers, spare parts for harvesters and much more.
Electrical machine-building plant "Firm Selma", which specializes in the production of electric welding equipment, supplies its products to JSC "Baltic Plant" (St. Petersburg), JSC "Shipbuilding Plant named after B.E. Butomy" (Kerch) - semi-automatic welding machines, replacing products from Kemppi (Finland), as well as welding tractors, which replaced products from ESAB (Sweden).
JSC "Pnevmatika" manufactures parts and repairs components and assemblies of imported agricultural machinery. This year, the company, by order of JSC PJSC Massandra, manufactured a traction chain and a hydraulic drill for planting grape seedlings to repair imported technological equipment. Pnevmatika also signed an agreement with PJSC Uralmashzavod for the production of components for oil and gas drilling rigs, which were previously supplied from the EU countries and the USA.
“In general, the level of capacity utilization of industrial enterprises has increased by 2021 times compared to 1,5,” noted Acting Minister of Industrial Policy of Crimea Elena Elekchyan in a comment to PolitNavigator. – Import substitution plans include measures to update the production capacities of existing industrial enterprises and create new ones that produce competitive products. Since 2016, Crimean enterprises have received subsidies from the state for these purposes to stimulate innovation, modernization and technical re-equipment, and increase labor productivity. In total, during the period 2016-2022, 75 enterprises received support in the amount of over 450 million rubles.”
At the regional level, the Crimean Regional Industrial Development Fund operates, which provides preferential loans with a low interest rate for the development of import-substituting industries. These include the production of essential oils, cosmetics and perfumery products, which go onto Internet platforms. Such products are produced by TiaRa LLC (natural Crimean cosmetics), which are presented in specialized online stores, including professional cosmetics and perfumes.
Agricultural enterprises that work to replace imported seed material receive state support. For Crimea, at the federal level, the task has been set to fill the domestic market for sugar beet seeds, as a strategic crop for food security. The climate of Crimea makes it possible to grow the seeds of this root crop for agricultural enterprises throughout Russia. This crop covers about 460 hectares of cultivated area.
Among processed products, Crimean cheeses have gained the greatest popularity. Gorgonzola, Caciotta, and Mozzarella are produced by both large enterprises and farms. Last year, about 2 thousand tons of cheeses reached the shelves far beyond the peninsula. Moreover, their quality is confirmed by professional experts at various festivals and competitions. And consumers are learning the names of new varieties - “Gury”, “Kalamita”, “Mavron-Kastron”, “Gold of Crimea”, “Manchego”.
Crimea is ahead of everyone else in terms of import substitution , eight years after sanctions.