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Prospects for import substitution

13.03.2019

Representatives of government and business discussed the prospects for creating import-substituting industries. The next meeting in the question-answer format was held in the conference hall of the hotel "Russia". The occasion was the presentation of investment projects submitted by the Agency for Investment and Development. Parliamentary Speaker Alexander Korshunov, Heads of relevant parliamentary committees Viktor Guzun and Mikhail Burla took part in the discussion of the topic of import substitution.

Chairman of the Government Alexander Martynov addressed businessmen and potential investors.

A qualitative step towards investors was made last year: the Supreme Council adopted the law “On state support of investment activity”. Almost a year later, practice shows that the process has begun: several investment contracts have been concluded with foreign investors. An equally important vector in the process of attracting investment is import substitution. According to the Minister of Economic Development Sergey Obolonik, this direction is directly related to the implementation of one of the principles of the Pridnestrovian Development Strategy, namely the achievement of economic self-sufficiency.

The Investment Agency considered the capacity of the domestic market and identified groups of goods, the import of which may be replaced with local products. Foodstuffs and raw materials, such as milk, vegetables, meat and eggs, were recognized as the most promising in terms of import substitution. Opportunities for development exist in the production of building materials and hardware. Thus, potential investors are offered to invest in the agro-industrial complex, food industry and other industries. The Investment Agency presented 20 ready-made investment projects. The assessment of the work done was given by the chairman of the parliamentary committee on education, science and culture, Mikhail Burla.

According to the parliamentarian, the main effect for entrepreneurs is that they see and understand the sales market and its volumes, for the state this is an increase in the level of employment, growth in tax revenues and overall GDP. According to preliminary calculations, a possible indicator of import substitution for selected groups of goods is 49%. An investment of $ 27.5 million is needed. At the same time, an increase in tax revenues to the budget is projected at a rate of about 2 billion conventional units. If investors are found, about 700 new jobs will appear in Pridnestrovie.