News

As part of their visit to Yaroslavl Region, Mikhail Myasnikovich, Chairman of the Eurasian Economic Commission's Board, and Artak Kamalyan, EEC Minister in charge of Industry and Agriculture, visited regional enterprises and got acquainted with their production potential. The latter includes the Aronap coffee and chicory plant, YaShZ - Cordiant JSC (the Yaroslavl branch), as well as the Yaroslavl Motor Plant (Autodiesel, PJSC), one of the key Russian engine manufacturers.

The visit focused on promoting the expansion of cooperation between industrial enterprises of the Yaroslavl region and those of the Eurasian Economic Union States.

During the visit, a discussion addressed creating a diesel engines line, with the major component’s production facilities located in the EAEU states, including in close cooperation with enterprises of the Yaroslavl region. The project initiated by the Eurasian Economic Commission should trigger the development of trade and economic relations between the Union Member States, which would increase their technological potential and ensure independence from imports of products in the engine construction.

“The development of engine construction is crucial when it comes to ensuring the technological independence of the machine-building industry in the Eurasian Economic Union States, given the current economic situation”, Mikhail Myasnikovich emphasized. – The EAEU diesel engine market’s capacity is more than 1 billion US dollars. While their production in our Union is only a fifth of what is needed”.

The EEC Minister Artak Kamalyan emphasized the increasingly growing demand for diesel engines in the EAEU, especially from the manufacturers of cars tractors, special equipment and quarry equipment. “It is logical that the issue should be resolved taking into account the industrial power of the Union States. At the same time, there is a huge potential for the development of competencies for all engine constructors and a number of subcontractors - manufacturers of fuel pumps, attachments and filtration systems, which make it possible to produce equipment of a high environmental class”, said Artak Kamalyan.

Manufacturers from different Union States have already joined forces. As a positive example, Mikhail Myasnikovich cited the new high-strength Russian-made engines, which are burnished at the Belarusian Automobile Plant (BelAZ).

“We believe that the Yaroslavl Motor Plant, along with the Minsk Motor Plant and the Ural Diesel Engine Plant, have all the necessary facilities to increase production output, expand the product range, for instance, by producing a heavy engine over 300 hp”, summed up Chairman of the EEC Board.

Notably, manufacturers from Russia and Belarus are most actively cooperating in the Union’s diesel automotive industry to-date. Given the development prospects for the EAEU automotive industry, these projects may attract other countries of the Union, including Armenia, Kazakhstan, and Kyrgyzstan.

A dialogue with the business community of the Yaroslavl region, which took place during the visit, addressed a wide range of industry issues related to customs and tariff regulation measures in relation to engines, participation in public procurement, customs regulation issues, development of cooperation between regional manufacturers of the Yaroslavl region and manufacturers of the EAEU Member States, as well as new mechanisms for financing joint EEC projects which are underway.

According to Mikhail Myasnikovich, Chairman of the EEC Board, business proposals have been taken into account at a level of almost 70%, that is, when introducing supranational regulation, the Commission considers the opinion of business circles.

According to Chairman of the EEC Board, the Commission is developing supranational financing mechanisms to support cooperation projects. One of them involves the financing of projects, with the Eurasian Development Bank participating. “The Commission is developing a new mechanism for subsidizing interest rates on credits and loans issued to enterprises by financial organizations to support joint projects in industry”, said Chairman of the EEC Board. He emphasized that the selection criteria for the Union’s joint projects include the participation of three or more countries, creating new facilities or upgrading production, increasing the production localization, mutual trade and investment. “Preliminary calculations suggest that the subsidy fund will support projects with a cost of about 16-17 billion rubles annually. We are planning to start financing from 2024”, said Mikhail Myasnikovich.

The event at the Yaroslavl plant brought together the representatives of Yaroslavl Region’s administration, Ministry of Industry and Trade of Russia, the Yaroslavl and Tutaevsky Motor Plants, and business community of Yaroslavl Region.