Russia is currently actively inviting foreign clothing brands to build factories in Russia. Deputy Minister of Industry and Trade Viktor Yevtukhov said that the government’s support plan will partially subsidize companies’ raw material costs, technology upgrades and new investment projects. It is understood that new factories will also enjoy long-term tax exemption policies until 2025. In addition, the Russian Ministry of Industry and Trade guarantees that invited manufacturers will enjoy market share by accepting government purchase orders.
Yevtukhov, Deputy Minister of Industry and Trade of Russia, said that it is important to establish cooperative relationships with large chain retailers and develop sources of raw materials. In terms of the external market, Russia has broad prospects for high-tech value-added products, such as industrial textiles and non-woven fabrics. At present, the market sales of this industry account for about 30% of the total industry sales. In addition, Russia’s non-woven production has increased eightfold in the past five years, and in the EU market, especially in Germany, the growth of industrial textiles accounts for 50% of the industry’s growth.
Despite the slowdown in economic growth, Russia’s consumer goods manufacturing industry has continued to grow. According to statistics from the Russian Ministry of Industry, in 2013, Russia’s industrial output increased by nearly 5%. In addition, in the first nine months of this year, the output value of the Russian garment industry increased by 7%, while the industrial growth rate during the same period was only 0.7%. At the same time, after Russia joined the WTO and eliminated tariffs, leather production fell by 10.5% and leather products fell by 20%. To solve this problem, in August this year, the Russian government issued a ban on the export of semi-finished leather. In addition, the Russian Ministry of Industry and Trade is studying a similar ban on hide exports. Yevtukhov said that the ban was mainly due to the shortage of raw hides and skins in Russia and the huge demand for raw hides and skins by manufacturers.
Currently, most synthetic fibers in Russia need to be imported, although domestic production has made great progress. For example, Shakhty in the Rostov region has a large-scale project to produce blended fibers, but the production of new fashion fabrics is still lagging behind. Yevtukhov said: “Russia is a major producer of oil and natural gas, so the possibility of developing chemical fibers and yarns is great, including developing the production chain through the high-end petrochemical industry.”
