Ministry of Economic Development of the Russian Federation
Ministry of Economic Development of the Russian Federation
Maxim Reshetnikov Concerning New Criteria for Selection To Systemically Important Enterprises List
11 April 2020 15:17

Russian Minister of Economic Development Maxim Reshetnikov spoke live on Russia 24 TV channel about new approaches to the criteria of selection to the list of systemically important enterprises and described conditions for consideration of the possibility to support them.

Systemically important enterprises framework was formed as far back as 2008. It is used to determine the list of enterprises that are subject to special monitoring by authorities in terms of paying taxes, employment, availability of critical technologies, or operation in any important areas or territories for the state. Several decisions are made on them, depending on the results of monitoring.

Indeed, a few weeks ago we created a draft list based on the criteria that used to work. According to these criteria, the largest taxpayers were included, as well as all those you named. However, we also understood that, on the one hand, these organizations were included, but some strategically important industries, spheres, and enterprises were not.

Therefore, at the Government Commission for Russian Economy Sustainable Development Improvement, we approved new criteria, which had been worked out by the federal executive authorities all this time. We identified them not just by financial performance, but by more than 70 specific areas. In each area, we approved objective indicators that would allow us to select the largest enterprises important for the country's economy and, accordingly, monitor the situation at these enterprises.

The criteria became more precise. We went over each area, for example, in oil extraction sector – [the criterion] the volume of oil extraction by the specific companies, in pharmacies — we looked at the turnover of the largest pharmacies to understand where the largest chains that provide pharmacies to our cities are. In transportation – what objective indicators, and so on. Specific indicators are introduced in each area. Sometimes cost, sometimes employment, sometimes both, sometimes some natural. But in any case, we carried out calibration to highlight these indicators in each area.

The same approaches are not acceptable for the medical industry and petrochemicals. Because in the medical industry, in pharmaceuticals, as we now understand, every enterprise, even a small one, is already important. It can often have a greater strategic significance than large industrial enterprises with large taxes.

It just so happened that Fonbet was included based on objective indicators — employment, taxes, and so on. At the same time, we understand that there is no such sphere as betting terminals in the new list.

It should be emphasized that listing as the systemically important enterprise does not mean access to money. This means that we start working with each enterprise on a selective basis, conduct stress analyses together with banks, and look under different scenarios how stable a particular enterprise is, and how much it is possible to save jobs. And only when we understand that the enterprise (and therefore owners of the enterprise, credit institutions, banks that give money to this enterprise) — all the ways to normalize activities are exhausted, then the state, federal executive authorities, come into play.

We have the necessary toolkit for this. Under the framework of the anti-crisis plan, at the instruction of the President, the Government made provisions, including for state guarantees and interest rate subsidization. We will make decisions on each enterprise very precisely; there is a government commission for this purpose. After all, the task is to save, protect jobs, and save these enterprises.

We continue to conduct stress analysis of financial stability together with banks. And only if the owner agrees to disclose all the information about these enterprises, if we realize that no dividends were paid, no money was withdrawn, there are no issues with taxes, banks used all their opportunities for restructuring (and so on), decisions can be made. And, however, we understand that, for example, demand has decreased, as is for airlines now: no flights, no income. We can lose the entire sector, the entire industry that the government has been actively developing and supporting over the last few years and which we will still need in a few months. But we can not tolerate bankruptcy right now. These are such cases on which we will certainly make decisions.

Дата публикации: April 11, 2020
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