“We will return to last year’s production volumes in 2021”

Minister of Industry Denis Manturov on investments in the fight against cove, support for the automobile industry and certification of the “21st Century Mainline Aircraft” – MS-21

Minister of Industry and Trade Denis Manturov / Press service of the Ministry of Industry and Trade

The deficit of protective masks and the main anti-malarial drug used to treat COVID-19 has been overcome, says Industry and Trade Minister Denis Manturov. Masks are produced and imported so much that stocks become too large, and investments in such production become risky. In an interview with Vedomosti, he also talked about how much production will fall and when industrial production will resume, why the first deliveries of the MS-21 aircraft will once again be postponed, and shared his vision of the work of trade missions, which was criticized by Federation Council Chairman Valentina Matvienko.

– In the Ministry of Industry and Trade, as I see it, the most stringent protection measures are masks, gloves, suits at the entrance of medical workers, temperature measurement, disinfection. Moreover, you are almost the “main violator” of the regime of self-isolation – judging by the news, you have more meetings and trips than all colleagues in the government. Are not you afraid of infection?

– For the first month, approximately from the second decade of March, I definitely did not go anywhere because we spent the day and spent the night in the ministry – it was not time for trips, and there was no need, because only the process of restructuring on new tracks was going on. Why then so many trips? Two reasons. First: in the online format it is impossible to inspect the production and make adjustments. It must be said that in almost all enterprises where I was, certain recommendations or changes in production logistics needed to be made. And the second reason: I could not personally thank the collectives of workers who reacted so responsibly to the tasks set for organizing the production of the entire anticode nomenclature.

At the Ministry of Industry and Trade, we are all regularly tested, and over the entire period the ministry’s team has probably only a few cases of cases, each of us is an emergency. And the units where the employees fell ill, we immediately completely removed to a remote site, provided quarantine. Well, the divided flows, access control, protection in the ministry and business trips – this is with us from the first day.

Unplanned investments

– Since the beginning of the pandemic, there have been complaints, especially from the regions, about the lack of the most widely used medicine in the treatment of COVID-19 – the antimalarial drug hydroxychloroquine. Foreign manufacturers, such as the French Sanofi, discussed the possibility of increasing imports. How did you solve the problem?

– Hydroxychloroquine was practically not produced in Russia, but they managed to solve the issue of support, first of all, on their own. Thus, Biocom, a member of AFK Sistema, increased its output by 173 times and produced 800,000 packages in April and May, and another 320,000 packages in June. Later, Nanolek launched its production – 130,000 packages in June. Therefore, I can say that the current needs of our country in hydroxychloroquine are completely closed. If it is needed more, we have already insured ourselves and have worked out the organization of production of the drug at the facilities of the Kurgan plant Sintez (also owned by AFK Sistema). With a complete reprofiling for the production of hydroxychloroquine, the plant will be able to produce over 1 million packages of the drug per month from July 2020. All these production sites are included in the registration certificate, so there will be no problems with the operational launch of production.

As regards imports, he helped with another drug, Pharmstandard, agreed with the Swiss Hoffmann, La Roche, and in May imported more of the tocilizumab drug used for rheumatoid arthritis than last year.

– How much did Russian enterprises invest in the production of medicines for coronavirus and personal protective equipment?

– The government allocated 25 billion rubles to the Ministry of Industry and Trade to stimulate output growth and the development of new drugs. These funds were fully distributed in the form of soft loans from our Industrial Development Fund (FRP) back in May. Including 4 billion rubles. went on to develop the personal protective equipment industry. Moreover, the FRP for the first time in history credited not only the development of fixed assets, part of the money was issued for the purchase of raw materials. It was a comprehensive team work, which gave a quick result. We, together with Russian companies, promptly made decisions, made weekly plans for the release of drugs, redistributed production volumes in order to quickly fill the market with the necessary drugs.

– The release of what other drugs could the industry increase?

– The most significant growth was shown, of course, by hydroxychloroquine, I already talked about it. At the same time, in January-May, Farmsintez produced 25% more calidavir (an analogue of the drug kaletra, the initial indication for which was HIV) than for the entire last year. In April, the production of linezolid antibiotic doubled its production in the first quarter of 2019.

– Are Russian companies developing drugs against coronavirus? Does the Ministry of Industry and Trade support them?


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the beginning of requisitions against laboratoires Servier and MSNA

After months of hearing, interrupted because of the outbreak of Covid-19, the charge starts to take on Tuesday morning, June 23, its claims against laboratoires Servier and the Agency of the drug, tried in Paris in the case of the scandal health Mediator. The indictment of lawyers, Aude Le Guilcher and Cristina Mauro, expected to last a day and a half, must start at 10 hours.

→ TO READ. Mediator : the last debates in the trial interrupted by the pandemic of sars coronavirus

Laboratoires Servier – home-mother, and nine companies of the group – and the national security Agency of the drug (MSNA, former Afssaps) are liable for heavy fines and compensation to many victims. Jean-Philippe Seta, the former number 2 of the group and the main accused among the persons physical, risk, to the difference of persons, a prison sentence. Several former managers and experts of health authorities are also continued to be suspected of conflict of interest with the laboratories Servier.

The trial of the Mediator, one of the worst scandals French health, was opened last September 23 in front of the correctional court, nearly ten years after the market withdrawal of the drug responsible for hundreds of deaths. Because of Covid-19, the debates were interrupted between 16 march and 8 June.

Placed on the market in 1976 as an adjuvant in the treatment of diabetes, but widely diverted as appetite suppressant, it is prescribed to approximately five million people during the 33 years of its marketing. The question of the longevity, while the early warnings about its danger have been issued since 1995, has led six months of discussions, often technical and dry.

“Evidence “

The pharmaceutical firm and the former number 2 of Jacques Servier – the all-powerful president and founder of the laboratories, who died in 2014 – are accused of having knowingly concealed the properties anorectic Mediator and its toxicity. They are tirelessly defended, pointing to” errors of appreciation “but refuting any intentional fault. They are pursued in particular for” aggravated tort of deceit “, “ scam “and” homicide and unintentional injury “.

→ TO READ. “I had to bang one’s fist on the table to get my order of Mediator “

This last offence is also alleged against the Agency of the drug, considered to to mistakes not intentional, for being late to suspend the marketing of the drug. Its current director-general assumed at the hearing” part of the responsibility “in the drama of health and will not be seeking the release.

Trial of the Mediator : the beginning of requisitions against laboratoires Servier and MSNA

More than 6,500 people are civil parties in total, of which at least 4 600 victims in “direct” and a hundred of sickness insurance funds, which have supported the repayment of the Mediator. In total, approximately one billion euros in compensation have been claimed, indicated the lawyers of the civil parties.

Sick, away, “ cynical “or “ impoverished “many victims did not attend the trial. Their lawyers have denounced in their names” the attitude of denial “laboratories Servier despite “ obviously “that “ ever the Mediator would not have had to be marketed “, has insisted Jean-Christophe Coubris, which represents 2 600 civil parties. The defence will take the floor beginning Monday, June 29. The end of the trial scheduled on 6 July. Decision in 2021.


The oil BP announces the elimination of 10,000 jobs

The announcement was made by CEO Bernard Looney of BP during an online conference for staff from BP : the giant british will remove nearly 10 000 of the 70 000 jobs in the world. The majority of these job cuts will take place by the end of the year and will mainly involve the employees in the administrative functions.

The hierarchy will not be spared, since BP will reduce by one third the number of executive officers, to the number of 400 for now. “These are difficult decisions to take “pointed out the boss in an e-mail to employees. But we must do what is good for BP “ and “this will help us to be more efficient “, he added.

Falling oil prices

The strategic plan announced in February, were already planning to form a group least great to be able to ensure a future less dependent on fossil fuels. But the health crisis has changed everything and has pushed BP to take radical measures.

→ TO READ. The new ambitions of green BP

Oil prices have plunged since march, below the threshold of profitability of BP in the face of a demand depressed by the shutdown of activity during the confinement. Bernard Looney explained that his group spends a lot more money than it brings in its funds, of the order of several millions of dollars per day.

The rebound is limited in the oil

BP had already announced at the beginning of April, a drastic decrease of 25 % of its investment expenditures and a cost savings program of € 2.2 billion in 2021, which is expected to be further strengthened. Because of the fall of course, BP had suffered a huge loss of 3.9 billion euros in the first quarter.

In addition, unlike its competitor Royal Dutch Shell, the group decided to maintain its dividend, is depriving them of this fact of financial margin of maneuvers.


Masks French, from shortage to overproduction

At the height of the containment, around 450 French companies are involved in the emergency in the production of masks, cloth washed 20 times, and sold between 3 and 5 € piece. But today, the sales plunge and the French producers find themselves with a stock of unsold goods. “We have about 50 million pieces on the arms “, regrets, Yves Dubief, president of the Union of textile industries.

→ ANALYSIS. Coronavirus : how the textile industry French reinvents itself

To limit the damage, the secretary of State Agnès Pannier-Runacher calls for major groups to choose the “made in France “. On RTL on 8 June, she called to prefer this product “environmentally friendly, having a good report quality price “. And she regretted that “many companies prefer to distribute to their employees with surgical masks imported from China “. Bercy has entrusted to Yves Dubief and Guillaume Gibault, president and CEO of the Slip français, a mission to attempt to place the unsold stocks from companies.

Gauze masks in public to the public stocks

Agnès Pannier-Runacher puts into perspective, however, the damage to the textile industry, explaining that the production of masks in cloth was “saved thousands of jobs “ during the past weeks and that overproduction does today that 10 % of companies in the sector.

To reduce this overproduction, the textile industries ‘ Union advocates that masks fabric can be included in the public stocks, arguing that they can be stored longer. It also calls for the companies whose stock does not find takers can receive partial unemployment with ongoing maintenance of compensation to 100 % for the next three months.

The textile sector is now at 60 %

“During the confinement, the production of masks is coming to provide an activity to the supply chain, while orders fellexplains Yves Dubief. But today, we do not yet see the return of orders, the traditional and the chain runs at 60 % of its production capacity. “

→ DEBATE. A relocation of the textile production is desirable ?

At the height of the containment, the French firms have produced up to 25 million of masks cloth per week. Arises now the question of the long-term maintenance of a French production, but which will be necessarily reduced during the period of the confinement, when everyone was looking in the urgency to equip themselves.


The German automotive industry fails to impose

Once is not custom, the German automotive industry is left almost empty-handed from negotiations with the federal government. The stimulus plan of 130 billion euros announced on June 3, contains almost none of the measures have the support of this powerful lobby.

The aid for the purchase of vehicles do not apply to models with combustion engines, but are reserved for electric models. Only a decline of three points in VAT for six months and on consumer products, could stimulate the sale of new cars.

Two crises

“The government sends two strong signals, analysis Klaus Wohlrabe from the IFO Institute in Munich. It no longer supports the segment of the combustion engines and it encourages the automotive industry to take action to transform themselves. This industry is being hit by two crises at the same time : one related to the pandemic, and another, already in progress, related to a structural transformation in the face of which it is not very well equipped. “

Since the scandal of the dieselgate in 2015, the automotive industry – and its 833 000 employees going through a difficult period, between a deterioration of his image, a decline in its influence on politics, the effects of the trade conflict between American and Chinese, and a change of european standards in terms of emissions of CO2 to which it has struggled to adapt.

Last year, vehicle production in Germany has fallen below the symbolic threshold of 5 million. For the first time since 1998. First exporting nation in the world, Germany has sold 3.4 million vehicles abroad in 2019, its lowest level since ten years.

The recovery promises to be slow

It is in this difficult context that the pandemic has shut down production. In April, only 10 000 vehicles are churned out of German factories, a drop of 97% compared to April 2019. And if in may, Volkswagen, BMW and Daimler have reignited a part of their production, the signs of a reboot is to wait. “The recovery will be slow, provides for Klaus Wohlrabe. The consumers are not ready to buy a new car. “

→ ANALYSIS. Coronavirus : Paris and Berlin hope to bring Europe around to their revival project

In the meantime, 93 % of the companies in the sector say that they have recourse to partial unemployment for more than half of their employees. Insufficient to ZF, the third largest automotive supplier German, and BMW, which are going to remove, respectively, 15 000 and 6 000 jobs.


“It is necessary to create a reconstruction fund “

The Cross : What is the current level of recovery in the industry ?

Philippe Varin : We should be this week with 70 % of the activity compared to normal. But it covers very different situations. The aerospace and automotive industries are the most affected, while the agri-food and health are operating at full capacity. We are facing a shock to the very abrupt and heterogeneous.

→ TO READ. Car Plan : the measures of Emmanuel Macron to the sector

The sectors that have been hit very hard, have benefited of support measures quickly and appropriately to the part of the State, but France comes out weakened from this crisis, probably more than its neighbors.

For what reasons ?

P. V. : There was a conjunction of factors. The French have shown a great concern, more than the Germans for example. Probably because our health system was least prepared and the general discourse more alarmist. There were also the fears of business leaders around their legal responsibility and social dialogue to be less consensual than in countries of northern Europe. In France, the coverage of part-time unemployment has also been more generous.

Are you anxious for the new year ?

P. V. : We will not avoid a rise of substantial unemployment. I am particularly concerned for young people who arrive on the labour market. The measures just taken by the government to financially assist businesses to hire apprentices going in the right direction. While the demand for learning has posted a growth rate of more than 10 % in the last three years, the first lift of information we suggest a fall in offers of 30 %. We must do everything to avoid this situation.

The government has also taken over our proposals on the activity long-term partial, because it is necessary to be able to maintain the skills in the company during this period of the trough, which can extend, the flexibility to limit job losses.

We believe, finally, the decline in industrial investment up to fifty billion euros in 2020-2021, or one-third less in two years. It is considerable, and it will have to find solutions.

What do you recommend ?

P. V. : The loan guaranteed by the State (PGE) has worked well, but its duration is limited and the issue of own funds of enterprises will very quickly arise. There have been dramatic measures announced by the State for large groups, but the subject goes well beyond that and it is necessary to create a reconstruction fund, whose form remains to be determined, because the French have a lot hoarded during the crisis, and it must also appeal to their savings.

→ ANALYSIS. Coronavirus : how the textile industry French reinvents itself

The evil of this crisis, can come out a well. The French have rediscovered the importance of having a strong industry. We advocate for a true renaissance to industrial. We do not get there as a collective project which brings together the businesses, State and local. Without forgetting Europe, which is ready to invest a lot.

What do you expect of the recovery plan that prepares the government ?

P. V. : This recovery plan should be focused mainly on the support for the offer and targeted support to the application, around three fundamental pillars. The trajectory of carbon first. It is essential to launch a well-structured energy-efficient renovation in buildings, public and private, as well as in the field of circular economy. We have the French leaders in this field, with the creation of jobs that cannot be relocated to the key.

The second pillar concerns the relocation. This is not completely new, but the crisis is forcing the industry to undertake a new reassessment of their risks, while the price of carbon is called upon to climb and that questions of sovereignty arise. The industrial sectors have already made a number of proposals in this sense and we will now see how they can be helped. Finally, the third pillar aims to speed up industrialization on the markets of the future, hydrogen, cyber security, or biotechnology.

These three pillars must be based on a solid foundation : we need to settle the topic of the competitiveness, and in particular of the taxation of production, three times heavier in France than in the eu average ; bringing a solution to the problem of own funds of enterprises ; and finally repair the human capital that will come out very damaged from this crisis by learning support and training.


German auto industry rebounds slowly

The cross : Several German car manufacturers such as Volkswagen and BMW have just restarted their production. What impact can this have in the short term?

Hildegard Müller : After several weeks of stoppage, the resumption of activity in the automotive industry, at a reduced rate and taking into account the fight against infections, is vital for the preservation of employment in Europe. This means that business can restart with the restoration of supply chains. But this is only the first step towards a return to normalcy.

→ READ. Bercy thinks about how to help the automotive sector

The automotive industry can provide decisive impetus for economic recovery not only in Germany, but also in Europe as a whole. It creates direct and indirect jobs for 13.8 million people in the European Union, which corresponds to 6.1% of total employment in the EU. The EU is one of the largest vehicle manufacturers in the world, so our industry can make a significant contribution to the recovery of the European economy.

What effects do you expect from the timid deconfinement in Europe and China for the automotive industry?

H.M. : The lifting of restrictions in many countries is a fundamentally positive sign for our industry. In China, for example, car sales fell only slightly in April. We can also see an increase in sales in certain segments, which can be attributed in particular to measures by the Chinese government to support the economy. China is an important market and a strong link in global supply chains. The recovery of this country is therefore of particular importance for the German automotive industry.

It remains to be seen whether the European market will recover as quickly. Europe also needs an economic recovery plan quickly. Europe’s competitiveness in the world is at stake. But there are of course other challenges, such as the difficult situation at many border posts.

The automotive industry is going through a difficult time. How can it withstand the crisis?

H.M. : New car registrations in Western Europe fell 80% in April and 50% in March. Three quarters of our production is exported. This shows the extent of this crisis for companies and people employed in the German automotive industry.

→ ANALYSIS. Coronavirus: how Germany managed to manage the crisis

Partial unemployment measures are important in Germany and help to mitigate the effects of the crisis, but they can only be used to a limited extent. The coming months will show how quickly the German economy is recovering and what the medium and long term effects of the crisis will be.


The Cabinet of Ministers recognized the owners of vending machines as victims of the epidemic :: Economy :: RBC

Photo: Evgeny Biyatov / RIA Novosti

The government expanded the list of sectors affected by the epidemic, adding to it the sale of goods and services using automated systems (vending machines) and the production of folk art crafts. The corresponding decree is published on the website of the Cabinet.

According to the decree, organizations affected by the epidemic will be deemed organizations whose activities fall under the following codes of the All-Russian Classifier of Economic Activities (OKVED) – 32.99.8 (“production of folk art crafts”) and 47.99.2 (“activities for the implementation of trade through automatic machines” )

In addition, codes 47.19.1 and 47.19.2 (“retail trade in a large variety of goods with a predominance of non-food products in non-specialized stores” and “department stores operating in general goods”) were replaced by 47.19 (“trade in general goods”).

At the end of March, authorities compiled a list of the sectors most affected by coronavirus. Enterprises whose activities relate to them can count on priority assistance from the state.

The first version of the list includes the spheres of transport, culture, leisure and entertainment, sports, tourism and the hotel business, catering, domestic services and education.


Experts appreciated the statement of the head of the Ministry of Justice of Latvia about “donation” during the years of the USSR :: Politics :: RBC

The historian emphasized that over 20 years of independent development, the level of economic potential of Latvia ranged from 0.7 to 0.9 in 1913. For 20 years in the USSR, this level has grown 17.4 times.

Alexander Dyukov, a researcher at the Department of Economic History at the Institute of Russian History of the Russian Academy of Sciences, in turn, noted that Bordans did not mention the subsidies that came to the republic from the Union budget.

“The budget of the Union republics was, figuratively speaking, a pool with two pipes: on the one hand, contributions went to the Soviet budget, and on the other, subsidies from the all-Union budget,” the historian said.

The diet of Latvia has demanded that the Russian authorities abandon the distortion of history

He specified that as a result of a large-scale subsidy program from the USSR in 1950-1960, Latvia became one of the most industrialized regions of the Soviet Union.

Dyukov noted that currently the opposite picture is taking shape in Latvia: the population of the republic is progressively decreasing, and there is no competitive industry either. “The country is not a donor, but a consumer of the EU budget,” he concluded.