Glass industry requires state support

The Forum on Made in Russia: How to Support the Glass Industry has opened the conference programme of Mir Stekla.

Alexey Ivanov, Head of International Policy Department at Komsomolskaya Pravda Media Group, welcomed the participants on behalf of the organisers of the event, Komsomolskaya Pravda Publishing House and EXPOCENTRE AO.

In his opening speech, Mr. Ivanov noted that the glass industry is not only the economic potential of the country, but for many cities and regions it is also a backbone sector, so the authorities must do everything they can to maintain and increase the potential of the glass industry.

Natalya Popkova, Deputy Director of the Department of Metallurgy and Materials at the Russian Ministry of Industry and Trade, opened the discussion. She cited statistics showing that glass production in the Russian market fell by 8% by the end of 2022. She explained, “Such situation is related to the fact that glass manufacturers shipped up to 30% of the production volume for exports. This direction was completely blocked.”

Giving examples of state support for the domestic glass industry, Natalya Popkova named the amount of compensation for the previous year in the form of subsidies from the budget for export deliveries, which amounted to almost 700 million roubles. She also noted, “This year the volume of the state support for the glass exports amounted to almost 1.6 billion roubles. It has increased substantially, and the subsidy rate has been raised to 25%. Glass manufacturers are now receiving quite good support from the state in terms of compensation for export logistics costs.”

According to Ms. Popkova, glass consumption in the domestic market will sooner or later go up as the Russian Ministry of Construction implements very ambitious plans to increase the volume of construction. It is also important to expand exports by redirecting them to new markets. “Russian glass is quite competitive,” Natalya Popkova concluded her speech.

Sergey Sekin, Executive Director at the Glass Union, spoke at length to the forum participants about the activities of the industry's largest association.

He also stressed the importance of coordinating the positions of individual industry players to maintain the sustainability of the industry as a whole, as well as the urgent need for government support programmes for the industry and the export of its products to foreign markets.

“As for the glass industry, since the Russian Export Centre was established, we have been working very closely with companies in the industry in all areas of the life cycle of an export project,” stressed Maxim Chapov, Director for Export Support for Building Materials, Textile Industry and Consumer Goods at the Russian Export Centre.

Today, according to Mr. Chapov, companies in the Russian glass industry actively use services to find partners abroad, an information and analysis portal on trade barriers and restrictions, and advice and information support on certification and intellectual property protection. Assistance with customs, logistics and legal support, as well as with the participation of Russian companies in major international trade shows and forums, is also in demand. In addition, the REC Export School provides informational and educational support to export-oriented enterprises in order to reach the international level of trade and improve the efficiency of export deliveries.

At the same time, the Russian Agency for Export Credit and Investment Insurance (EXIAR) added new insurance products for importers, primarily advance payment and bank loan insurance for imports, which is no less important for ensuring the stable operation of glass production in this country.

Dmitry Pereverzev, Executive Director at the Association of Manufacturers of Construction Materials, Equipment and Raw Materials of the Eurasian Economic Union, Pavel Lyotov, Development Director at Yta, Vladislav Rymsha, General Director at Vipkomplekt, member of the Expert Council at the Russian State Duma Committee for Small and Medium-Sized Business, and other discussion participants covered various aspects of the glass industry during its adaptation to new conditions.

All participants in the Forum on Made in Russia: How to Support the Glass Industry emphasised in one way or another the need to make all possible efforts, including timely and effective state support, to maintain the potential of the Russian glass industry. This is what industry leaders and experts see as the key to a rapid recovery of the national glass industry, together with a recovery in domestic demand for its products.

Press Service, EXPOCENTRE AO