Ivanovo supports textile industry under Russia's accession to WTO

Ivanovo region Governor Mikhail Men delivered a report on the support of textiles under Russia's accession to the WTO. The governor presented his report on July 16th, at the meeting of the Federation Council Committee on Economic Policy in Moscow.

Mikhail Men stressed out that the industries working for domestic demand may find themsevles in the least favorable situation during Russia's accession to the WTO. The regions, where these industries are concentrated, may therefore face serious problems. As for the Ivanovo region, it goes about the textile industry. "Textile companies will come across aggressive price competition with imported goods. If we do not take measures to support domestic producers, the Russian market of light industry goods may fall sharply," said the Governor.

The head of the region emphasized the importance to support the basic, large textile corporations. "In the region, there are, in fact, holding companies, which forms the textile industrial cluster around themselves. These companies may become the points of growth, which will make our textile industry develop into a highly competitive innovative industry," said Mikhail Men. He also spoke about the project to build a synthetic fiber factory in the region.

As for additional measures of support, the Governor proposed the provision of state guarantees for the implementation of complex innovative projects in textiles, as well as a moratorium on cutting the budgets for the companies of the light industry. The budgets are used to compensate a part of the companies' spending on raw materials and equipment. Mikhail Men supported the maximum participation of Russian companies in the implementation of the state order, especially in the defense sector. The head of the region mentioned the provision of subsidies from the federal budget to the organizations of textile and light industry for 2013-2017 to reimburse the costs on heat and energy resources.

At the end of his speech Mikhail Men said that the key players of the textile market do not see any considerable minuses in Russia's WTO membership. "Russia has never had a tangible competitive advantage for the development of the textile industry. Raw materials, equipment and yarn - we buy all that for the same price as our foreign competitors do. If support measures are determined, if this issue is solved, then we have every reason to hope that the Russian textiles will exist," said the Governor.