Russia Economy Thread
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if there was no restrictions on all airports due Ukraine conflict and other reasons by now we should expect 40 cites of Russia connected to Middleast directly. if Russia close airspace it will give Arabs that leverage to control aviation traffic between Europa/Africa and Asia.
The Ministry of Industry and Trade sued the Russian chip manufacturer
The agency requires 458 million rubles from a company controlled by Rosnano for failing to achieve targets for a subsidy issued in 2016
Photo: Brian Kostiuk/Unsplash
The Ministry of Industry and Trade filed a lawsuit against Crocus Nanoelectronics LLC, controlled by Rosnano. Writes about this . The Ministry of Industry and Trade demands 458 million rubles from the company, since the targets for the subsidy issued in 2016 were not achieved. Then the company received 1.2 billion rubles to create electronic components for computer technology on 300 mm wafers.
According to Kommersant, Crocus Nanoelectronics has had almost no orders in recent years, and now the company has a loss of almost 2 billion rubles. If the Ministry of Industry and Trade wins in court, the manufacturer will probably have to sell the equipment or attract a new investor. It is reported that the asset may be of interest to Rosatom.
Leonid Konik, CEO of the ComNews group of companies, explains why the company could not meet the targets:
— In order to develop such a progressive technical process, quite a lot of unique industrial equipment is needed, 99% of which is not produced in Russia. Until February 24, it was not easy to acquire this equipment, bring it to Russia, after February 24 it became simply impossible. It is very likely that some elements that were supposed to be delivered during this year turned out to be unattainable. Technology, in general, is a bit of a creative process, it’s far from always possible to fit them into the stated time frame, there may well be some kind of conscientious delay, but the Ministry of Industry and Trade, in order not to turn out to be extreme, in principle de jure is obliged to sue, even if relations with this enterprise are the most friendly,
Do they have to sue according to the procedure?
- Even if the state contract is disrupted literally for one day, the state structure is obliged to sue, because the letter of this state contract has been violated. And how things really are there, and this is a hopelessly failed story, or, say, six months later, we will still see production, we have to look here.
The Ministry of Industry and Trade does not always win such court cases, says Sergey Matyushenkov, managing partner of the BGMP law firm.
Sergei MatyushenkovManaging Partner at BGMP Law Office
“If you look at the Ministry of Industry and Trade in principle, it is quite actively suing. Over the past 12 months, he became a plaintiff for 15 billion rubles, and for all the time he has court cases for 52 billion rubles, where he acted precisely as a person who demands money. This is the total number of cases, but, most likely, most of them are subsidies, since the Ministry of Industry and Trade allocates money for development to various corporations, and if some indicators are not achieved under their agreements, then the party may demand the collection of subsidies. But we need to look at the contract, what indicators they should have achieved, because a lot of specifics are hidden from us. If we take the Ministry of Industry and Trade directly, then they have about 50 to 50 in terms of satisfied claims and those denied satisfaction. If the Ministry of Industry and Trade wins the case, then the company may have such consequences, like bankruptcy, some kind of checks by law enforcement agencies are also possible, because the question may be asked: you have not reached the indicators, or maybe there were some other violations, maybe some part of the money went somewhere ? And this is a fairly common practice, when investments, when they do not live up to expectations, especially if it is connected with the state, begin to be painted in a certain criminal context, although in principle there might not have been intent to embezzlement. And if the court suddenly takes the side of the company, it means that the company acted in good faith and should not return this subsidy.” did some of the money go somewhere? And this is a fairly common practice, when investments, when they do not live up to expectations, especially if it is connected with the state, begin to be painted in a certain criminal context, although in principle there might not have been intent to embezzlement. And if the court suddenly takes the side of the company, it means that the company acted in good faith and should not return this subsidy.” did some of the money go somewhere? And this is a fairly common practice, when investments, when they do not live up to expectations, especially if it is connected with the state, begin to be painted in a certain criminal context, although in principle there might not have been intent to embezzlement. And if the court suddenly takes the side of the company, it means that the company acted in good faith and should not return this subsidy.”
In 2016, at the same time as Crocus Nanoelectronics, subsidies were approved for such companies as Baikal Electronics, MCST, T-Platform and Hi-Tech for a total of 10 billion rubles.
In 2020, the Ministry of Industry and Trade tried to recover 500 million rubles from Baikal Electronics due to the delay in the start of production of Baikal-M processors. Then the court dismissed the agency's claim.
i am sure they will buy stuff what is available but they will self develop also just like they doing in software.
The point i was making is very small amount of subsidy was given that is non serious approach to develop 300mm fab equipment. Russia hasnt put the kind of effort into semiconductors like in some other fields.
When you see existence of Lada/Gaz/Kamaz/Maz vehicles itself gives indication of ideological foundation influencing engineering and these vehicles win rallies in desert heat near equator even though they were developed in very different environment at home base.
similar situation with Aviation. This Ukraine war is test of Russian engineering to see how aviation can deal with high tempo operation over extended period of time. This experiance willl be taken into account in further developments.
Several Russian companies build routers. As for cellular communications, the Russian government was planning to produce 4G equipment in Russia, even today a large part of the country lacks 4G coverage. This was supposed to be done in collaboration with Nokia in a joint venture. But now with the sanctions that project has been delayed like 2 years. Given the much higher costs of 5G it would likely not be cost effective outside the major cities like Moscow and St. Petersburg.