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13688
Thu, 07/24/2008 - 14:27
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PM Putin to pay visit to Nizhny Novgorod

MOSCOW, July 24 (Itar-Tass) - Russian Prime Minister Vladimir Putin will on Thursday hold a conference in Nizhny Novgorod.

The subject will be the development of ferrous metallurgy and supply of metallurgical products to the market.

Putin will also visit one of the leading metallurgical plants - the Vyksunsky metallurgical works, Andrei Dementiev, the Russian deputy minister of industry and trade, told reporters.

In May 2007, the cabinet of ministers approved the strategy ofdeveloping ferrous metallurgy in Russia. The Russian government believes that some positive results have already been achieved.

Over the last seven years investments in the industry have increased fivefold.

They reached 128 billion roubles last year. In January-May this year ferrous metallurgy plants produced 44.5 million tons of iron ore,14.7 million tons of coke, 22.7 million tons of cast iron, 32 million tons of steel and 26.6 million tons of rolled products.

In the next three or four years Russian ferrous metallurgy will beable to meet all domestic demands. "There will be no deficit and domestic shortages by 2010-2011," Dementiev said.

The government intends to extend the duration of the DevelopmentStrategy for the metallurgical industry from 2015 to 2020.

The conference in Nizhny Novgorod will also consider additional protectionist measures in ferrous metallurgy. "In terms of ferrousmetallurgy Russia is one of the most discriminated countries in the world market," the government source went on to say. Eleven countries are applying restrictive measures to its products. Expansion in the world market will make it possible to build up domestic production.

The government made special note of the fact that protectionist measures in the domestic market would be in full compliance with the WTO rules.

Andrei Dementiev said that the delegates to the conference wouldanalyse customs and tariff policy in the field of metallurgy.

The Russian government intends to radically increase export duty rates for ferrous metal scrap from 15 to 110-115 euros per ton. The deputy minister said that would only bring the export duty rate in line with world market realities.

Dementiev explained that despite the fact that there is no shortage of metal scrap in the internal market, a demand for it would keep growing by 8%-10% because of numerous projects in this sphere.

"An increase of export duties will equalize the conditions of work of domestic producers and foreign manufacturers and will create similar conditions for them. Besides, a ten times increase in exports duties will make it possible to eliminate grey export schemes and make the metal scrap market transparent," Dementiev went on to say.

"It is not a prohibitive duty, we are not restricting exports, we just want the size of this duty to conform the market," he stressed.

The government is also working on another measure. It wants to reduce to zero import duty rates for metallurgical products of which there are shortages in the Russian domestic market.

During his stay in Nizhny Novgorod Putin may visit a recently opened community liaisons office of the United Russia Party. It will deal with the most difficult problems of the local population.

"If people who have turned to power institutions of all levels still cannot solve their problems, this is where the community liaisons office comes into play," the Russian government emphasized. The United Party's leader will control all the issues to be received by the office. It will deal with the most complicated social, economic and political issues that require the attention of senior party officials.

The United Russia Party intends to set up similar offices in all Russian regions in the next 18 months. Vladimir Putin may be able to personally receive citizens in some regions if his premier's scheduleallows him to do that.

Putin's visit to Nizhny Novgorod is taking place a day after thepublic liaisons office has opened there. It's a good opportunity for the prime minister to test this novelty.

The United Russia Party already has more than 2,500 local publicliaisons offices in Russian regions. However, the party leader does not directly control their activities.


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