Moscow bets on
large-scale industry

Over the last few years, Russia's support of non-resource, non-energy exports has mainly been focused on small and medium-sized businesses. However, we should not disregard the advantages of big business in order to properly implement the International Cooperation and Exports national project.
Vladitto/Shutterstock/FOTODOM
Other countries with developing economies are, in turn, actively supporting large non-resource exporters. For example, the Brazilian National Bank for Economic and Social Development (BNDES) is implementing a special programme providing long-term financing for the aviation industry represented by Embraer, which aims to expand exports of aircrafts and associated products.

One of the most obvious reasons to turn attentions towards large industrial enterprises and agricultural holdings is their developed infrastructure; They have sufficient operational and manufacturing capacities and, most importantly, vast experience in the successful implementation of rele­vant projects.
We initiated the signing of
export contracts and 77 export agreements
There are large amounts of non-resource, non-energy export products at Moscow's disposal, but their full potential has yet to be reached. Currently, the main objective is to shed light on issues faced by exporters, and to develop new products for them in order to stimulate demand in international markets.

Here is an example: a large Moscow company designs and manufactures neural processing units, which have come into use in Russia, and is ready to export them to foreign markets. The manu­facturer's next step is to perform product testing followed by product certification. Then, the company should outline its global marketing strategy and find interested foreign buyers. We omitted most of the peculiarities, but in general this is how it works. Now, imagine that at some stage of their international business activi­ty, the company runs into difficulties: Let's say, an imaginary employee has lost the inquiry letters from potential foreign customers because of his lack of necessary competence. So, there is support, funding, tools and mechanisms known and provi­ded to help companies attract new clients, but incompetence prevents them from fully benefiting.
Natalya Prikhodko
Director General of "Mosprom" ANO
"Mosprom has been functioning for a little over six months but has already proven itself to be relevant. This can be supported by the fact that as of the end of the previous year we initiated the signing of 10 export contracts and 77 export agreements between Moscow companies and foreign trade partners. Ano­ther exa­mple is the establishment of a construction mate­rials plant in the Republic of Cuba. We plan to put it into operation at the end of 2020. It will consist of 22 production lines with a capacity of 10,000 tonnes of fibreglass rebar and gra­ting per year."
the Moscow Government has added a new component to the capital city's export development system:
the Centre for Support and Development of Industrial Exports, or "Mosprom" ANO
Today, many large companies employ an international business model for the establishment of shared service centres (SSC), which involves the transfer of support functions to a unified centre. Using such practices, the Moscow Government has added a new component to the capital city's export development system: the Centre for Support and Development of Industrial Exports, or "Mosprom" ANO (Autonomous Non-profit Organization). The Centre is responsible for all aspects of foreign economic activity by large and medium-sized manufacturing and agricultural enterprises. These aspects include technical regulations, improvement of state support measures, and media support. The Centre serves as a unified consulting support centre, offering qualified specialists who can manage one's participation in international exhibitions, opera­te business mission trips, and find buyers as well as organize technological tours of Moscow plants for them. It can also develop persona­lized solutions, helping overcome administrative barriers, or designing marketing strategies, depending on client needs.
TOP 5 PROBLEMS AND SOLUTIONS
FOR MOSCOW EXPORTERS
Problem
Problem
Solution
Lack of funding
Lack of funding
Subsidies and concessional loans (Moscow Fund for Support of Industry and Entrepreneurship, Russian Small and Medium-Sized Business Corporation, etc.)
Lack of marketing strategies
Lack of marketing strategies
Transfer of support functions to an outsourced unified centre for support of foreign economic activity
Searching for buyers and distributors
Searching for buyers and distributors
Consulting support for transactions by institutions for export support and development; appealing to the Chamber of Commerce and Industry and the Russian trade missions abroad
Lack of competent personnel
Lack of competent personnel
An educational infrastructure for exporters, personnel retraining, and consulting support by institutions for export support and development
Bureaucratization of business processes
Bureaucratization of business processes
Transfer of support functions to an outsourced unified centre for support of foreign economic activity
Corporate Issue, Moscow Department
of Investment and Industrial Policy
E-mail: pressprom@mos.ru
Audience: 16+