On the eve of the Victory Day the Ministry of Industry and Trade of the Russian Federation published a draft law “On industrial policy” that contains important innovations: for example, tax exemptions for the most significant investment projects, start-up subsidies, and European-like low interest rate loans.
Obligatory assessment of impact that industrial policies have on competition should be reflected in the law
The issues on how to run domestic industry at full capacity, to prevent producers with the state support from distorting the competition, and the relevance of these issues were discussed by a correspondent from Rossiyskaya Gazeta with the authors of “Ideas for the new industrial policy” , among which were the Head of the Department for Strategic Studies in Energy of the Analytical Center Alexander Kurdin and his co-authors the Deputy Head of the Federal Antimonopoly Service Andrey Tsyganov and the Head of the Department of Competition and Industrial Policy of the Faculty of Economics at the Lomonosov Moscow State University Andrey Shastitko.
Alexander Kurdin believes that the enactment of the law “On industrial policy” is a matter of a few months. “The law includes fundamental things, but it serves as a framework, and the issue on considering the priorities of implementing competition policy is still under consideration”, explains the expert. According to his opinion, obligatory assessment of the impact that industrial policies have on competition should be reflected in the law.
The expert noted that there are no current measures to protect and enhance competition in the draft law prepared by the Ministry of Industry and Trade of the Russian Federation. “On the other hand, we must be sure competition policy does not interfere but helps the industrial policy. Sometimes they enter into a clinch”, expert noticed.