In Tatarstan, a wonderful climate for investment?

“Very expensive, very little return and with zero efficiency”

At the end of 2018 Special economic zone “Alabuga” was recognized as 100% effective, noted in Kazan, emphasizing that it is a merit of the Ministry of economy of the Republic of Tatarstan, as the governing body of the SEZ. Well, “Innopolis” and does launched the careers of other Federal Republican officials.

However, the effectiveness of the SEZ in the Kremlin, it seems, have ceased to believe in 2016. “Very expensive, very little return and with zero efficiency”, – said TASS press Secretary of the Kremlin Dmitry Peskov. The creation of special economic zones in 2006, spent 186 billion, and back in the form of taxes and fees returned only 40 billion, reports “Kommersant”. Putin instructed to transfer the SEZ region, to suspend the creation of new SEZs and the work of the ten least effective.

In Kazan, then, insisted: “the Significance of the special zone “Alabuga” is not questioned”. “Alabuga” is definitely recognized as effective,” – said Deputy Minister of economy of Tatarstan Natalia tarkaeva. In the project “Alabuga” 25.7 billion rubles of state investments, and the SEZ residents pay taxes to 13.8 billion rubles. To fully recoup the investment SEZ plans by 2019, said the representative of the SEZ, Mikhail Mironov.

it is Noteworthy that the business electronic newspaper “Business Online” (link) in the article titled “the Rich also cry: the top-100 loss-making companies of the Republic of Tatarstan” recently reported that “controlled by the government of the Republic of Tatarstan (RT) of the SEZ “Alabuga”… traditionally turned in a respectable minus: the expenditure on the improvement of the infrastructure for foreign investors and “caftan for growth” we wrote repeatedly.

Similar symptoms are observed in other special economic zone “Innopolis” … But if the earlier loss was involved, the Federal center (two-thirds in “Alabuga” and 98% in the “Innopolis”), after the transmission of these packets Tatarstan in the beginning of 2018 all costs fell on the local budget. Tolearn in less gone and the University “Innopolis” …on the verge of elimination is the former main contractor of the special economic zone – “KamGES”, according to business electronic newspaper.

in 2016, when both areas came under the full control of the Republic of Tatarstan, – the Republic’s budget began to allocate a quarter billion rubles for the content of “Alabuga” and “Innopolis”, where he acknowledged that residents here are not enough to recover investment in infrastructure. And for the past three and a half years here, it seems, little has changed.

Optimization of avtokompleks

In an equally crisis was avtokompleks of Tatarstan.

“22 times (!) up to 1.4 billion losses grew pkh, OOO Avtokomponenty”, specializing in the production of spare parts. … In turn, the “automotive Components” managed assets, such as the “Dimitrovgrad plant of lighting engineering” and “Novocheremshanskaya Assembly plant”…In June last year PCH “automotive Components” was declared bankrupt, but that was preceded by a chain of “death”. In may 2019, was liquidated pursuant to the holding “Novocheremshanskaya Assembly production”, earlier, in September 2017, departed this life subsidiary, OOO “Industrial assets”, and in may of the same year, was eliminated UK “Dimitrovgrad industrial Park.” A few days ago, January 15, finally rested in the Bose and the HRP “Autocomponents” – the Tribunal declared him eliminated”, – the newspaper “Business Online”.

But against the backdrop of the collapse of the Republican leader from long-term losses remains a “Ford Sollers holding”, which last summer closed the production of cars and engines in Tatarstan. The project for ten years was embodied in Tatarstan with the participation of VEB. The state Bank could be hit hard by the closing of the American Republic “daughters”. But Ford still paid off with the Russian debt.

it is worth noting that, according to the business electronic newspaper “Business Online”, “Ford-Sollers was in the top 100 loss-making companies the Republic of Tatarstan on the results of 2017. Over the next year on revenue growth of holding 3.5% to 69.4 billion rubles, its net loss jumped from 13.6 billion to 23.8 billion, during five years accumulated loss of 80.5 billion rubles.”

In the region for this reason there are rumors going around, someone says that sort of Republican officials promised to help the Americans (for example, the state contract for the supply of school buses), but something went wrong.

Now, some blame the company’s management, which was wrong to build a policy concern in Russia, the others nodding in the direction of Republican officials. But whoever made errors – the investment failed, the invested funds did not meet expectations, and the modern plant has not reached the expected capacity.

“Ammonium” as the end of patience?

But perhaps what is surprising in the Republic the most is the situation at the enterprises of chemical and petrochemical complex. Until recently it seemed that belonging to the oil business automatically ensures success. But everything changes…

thus, according to the same business electronic newspaper “Business Online”, “Center of Dis” is known in the Republic, existing since 1991 company construction supervision, auditing and Metrology, in the past one of the major contractors “Transneft”, which is part of … composed of the top 50 construction contractors at year-end 2017. In 2016 it is on the orders of the oil pipeline monopoly “Center of Dis” received of 1.22 billion of the 1.25 billion rubles, the company completed orders. And for 11 months of last year “Transneft” has provided all of the 1.5-billion-dollar portfolio of Metrology. However, having in 2018 contracts with advances 211,4 million rubles, “Center of Dis” did not worked in advance. In the end, the contracts were terminated, and the advances now returns for the sponsoring company LLC “Tatneft’ -Neftegazstroy”.

“Involved in the rescue operation “Tatneft’ -Neftegazstroy” in turn recognized a loss of 1.3 billion rubles”

In the top 50, published in “BUSINESS Online” got to the third controlled by “Tatneft” “Zavod Elastik”. Owned by the oil companies on all hundred “fin-invest” engaged in investments in securities, lost 205 million against the previous net profit of 18 million rubles.

Among the leaders of the Republic on the loss of electronic newspaper calls and other regional petrochemical enterprises.

But, perhaps, the largest investment project of the Republic of Tatarstan was the reconstruction of JSC “Ammonium” plant for production of mineral fertilizers, the driver who is known as the government of the Republic.

the Project was implemented in 2011. A loan of $ 1.4 billion was provided by the VEB. Tatarstan authorities have been actively attracting foreign investors. The President of the Republic personally fly to solve the issues in Japan, negotiations were conducted with Italian investors.

Today it is believed that the company’s problems could be related to the fact that because of growing up in the 2015 year of the dollar “Ammonium” was unable to pay for foreign currency loans. The need to service debt led to growth of non-payments to partners.

However, skeptics wonder, and take into account the volatility of world prices for products in the preparation of a business plan?

“So, when developing the business plan the cost of urea is $500 per ton in January 2017 — $224 per ton in January 2018 — $233. Almost exactly two times lower,” according to “BUSINESS Online”.

whatever it was, but the web has decided to withdraw from the project, began looking for a strategic investor for “Ammonium”. Among the companies interested in buying the asset, the media called “LUKOIL”, “URALCHEM”. However, the choice was made in favor of the holding company “SDS-Azot”.

in the Fall of 2019, it was announced that the Bank agreed to sell rights of claim on the credit profile of the investor – KAO “Nitrogen” (enters in “SDS Nitrogen” Roman Trotsenko) for $900 million Trotsenko announced plans to invest in the company an additional 12 billion rubles.

Here surprise yeahnot that VEB has agreed to assign the debts is much cheaper, and the fact that he did not deal, for example, “LUKOIL”, which was ready to pay for “Ammonium” anymore.

the Press service of the Tatarstan Ministry of industry and trade said that the introduction of the starting of the bankruptcy procedure is necessary to restore solvency to “Ammonium” and continue working during the period of transition under the control of a new investor.

it is Interesting that when these events involve the authorities, the owners and the key creditor of the plant – this is called optimization and improvement. Something like that with some competitor, it is unlikely that it would have been so loyal in the definitions. In the current crisis becomes more likely.

Recession ahead?

Surprisingly, the crisis in Tatarstan, apparently, for some reason, can begin before global, and will affect primarily industries that are either fully controlled by the budget or depend on public preferences.

for Example, according to “BUSINESS Online”: “a default is considered unprofitable “metroelektrotrans” …. It is possible that the loss of budget money could be less if, for example, the carrier bought a tram directly from the factory and not through intermediaries.”

“Chronically unprofitable and the state housing Fund under the RT President … Note that the flow of earmarked contributions to the Treasury of the state housing Fund, generated mostly the largest enterprises of the Republic increased from 8.4 billion to 10.5 billion rubles. But then, listening to developers, state housing Fund raised 21% of price per square meter in the most convenient from the point of view of transport accessibility of residential area “Salavat kupere”, continues the business electronic newspaper.

of Course, in Tatarstan there are successful projects, but in General the real picture of the investment luck of the region looks slightly better than the neighbors.

thus the example of Special economic zones, with which we started shows that at some point the trust of soinvestorov can end. If the conditions of growing crisis, the Federal “Golden rain” runs out, it may affect primarily the population of Tatarstan, the success of which will have to seriously save.

based on the materials of the network edition “the Age”