Measures for export growth in an era of low oil price

«Oil trade will not be profitable at the low oil prices; it is crucial to shift on export of goods with a high added value. Raw rubber and plastic materials prevail at the non-energy export» — said chairman of the session, Tatarstan President Rustam Minnikhanov, while performing at the Economic Council under the Cabinet of Ministers of the Republic of Tatarstan on development of export production of Tatarstan enterprises in the Government House.

Members of the Government, Economic Council, head of Tatarstan Investment Development Agency, as well as executives of export-oriented companies and organizations of the republic also participated at the session.

According to the President, development of processing of agricultural products is necessary. Thus, rabbit meat (to 30%) is planned to be supplied to Persian Gulf countries. We have a great potential in the framework of Halal production«, — said Rustam Minnikhanov.

Domestic IT (with participation of the Innopolis, It-park), engineering centers, republic’s universities were classified as potentially export goods and services of the Republic of Tatarstan. There are some successful examples of competitive products supply to export already. These include «Eidos» company, specialized at producing of medical simulators, actively supplied overseas.

«Oil and petrochemicals account for the lion’s share of Tatarstan export, it is 72% of total volume. Share of small and medium sized businesses, involved in export activities, is very small» — comments Taliya Minullina on Economic council session. We should see another experiences. For example, UAE with the most competitive economics in Islamic world after Qatar and Kuwait, where oil provided a fast growth within just a few decades. However, other economic sectors also were developing rapidly, especially foreign trade. Construction, trade, tourism and agriculture were becoming more and more important in the structure of gross national product during the time of profits’ share decreasing from oil extraction and refining in UAE GDP total volume. Government infrastructural support and existence of free zones with low taxes turned UAE into third center of the re-export in the world. This item forms almost the third of revenue in the government’s economy and provides strong international links.

Tatarstan Investment Development Agency`s chief executive also reminded that Tatarstan is at the halfway between manufacturing economic directions of the East and Europe, what could provide republic’s transition into the federal economic center.
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