Ministry of Economics of the Russian Federation plans measures to boost industry

The Russian Economy Ministry said it has prepared a plan to develop the country’s industrial and technology sectors in 2006-2007.

Andrei Klepach, Director of the Macroeconomic Forecasting Department of the Economy Ministry, said the plan was based on proposals from other government departments, which were discussed by the Council for Competitiveness in September 2006.

It covers 21 areas of the country’s industrial development, including measures to boost capital investment and innovation, improve state institutes for development, support manufacturing exports, prepare qualified staff, develop industrial infrastructure, stimulate the development of small- and mid-size businesses, develop industrial design, and to support individual industries.

Law amendments are planned to improve the country’s amortization policy. Changes will also be made to the Tax Code to stimulate innovation. A federal law will be passed in the fourth quarter of 2006 to exempt research fund allocations from tax. Another bill will give more tax relief to taxpayers investing in innovation.

The government also plans a federal law to set up the State Development Corporation based on Vnesheconombank, Roseximbank and the Russian Development Bank, with an authorized capital of $2.5 billion, in the first quarter of 2007.

Other proposals include measures to improve VAT administration, enhance the mechanisms of subsidizing interest rates on export loans and issuing government guarantees on loans, develop a program for regional venture funds financing small businesses in the research field, and measures to develop design in 2006-2008.

In 2007 the Economy Ministry will prepare a long-term forecast for Russia’s socio-economic development until 2020. It will also revise Russia’s energy strategy until 2030 and develop a long-term forecast for research and technological development until 2025. (Source: www.rbc.ru)