Russia's Formation of Eight National Projects to Ensure Technological Leadership

Putin's meeting with First Deputy Prime Minister Denis Manturov

First Deputy Prime Minister Denis Manturov

Making key priorities national projects is how Team Putin has managed to improve Russia despite being accosted by thousands of illegal sanctions, a form of economic war waged against Soviet Union/Russia for over 100 years, and has utterly failed based on Russia’s results—it’s now the #4 global economy. The efficient completion of national projects that then become normal operations within the overall economy is one reason for Russia’s success. There are times when it seemed like too many national projects were named that would allow for some to not get the budget support needed, but that fear was overcome via the creativity of Russian legislators working together with Team Putin. Mr. Manturov was previously Minister of Industry and Trade before being promoted this year to his new post. Let’s read his key report:

Vladimir Putin: Good afternoon, Denis Valentinovich!

National projects to ensure technological leadership. Should we start with this?

Dmitry Manturov: That's right, Mr Putin, if I may.

The Government has completed the formation of eight national technology leadership projects. We have done a lot of work with the regions, constituent entities of the Russian Federation, with the business community, and with science, and we have passed every project through a strategic session chaired by Mikhail Mishustin [Prime Minister].

We agreed on the main priorities, parameters, support measures, and funding volumes. By 2030, we should allocate about 3 trillion rubles for these projects. Approximately the same ratio should be provided by the constituent entities of the Russian Federation and businesses. These volumes should ensure that your development goals are met. This will contribute to improving the technological level of socio-economic development of the main spheres of our country in the near future.

First of all, this concerns the industrial sector, Mr Putin. The cross-cutting task here is both updating fixed assets and increasing labor productivity-exactly as you set us the task.

The national project on means of production and automation is of critical importance here. In addition to metalworking machines, we will focus on additive manufacturing equipment.

And secondly, as you have set us the task – it is to increase the volume of development, production and supply of robots for various purposes. By 2030, we plan to produce about 40 thousand units for various purposes. Today, the level of equipment is 19 units per 10 thousand, the task is to reach the level of 145 at least.

And the second most important is the national project "New Materials and Chemistry", which includes rare earth metals, composites, and microbiology products. In total, we need to recreate 55 critical technology chains. These measures should provide an increase in value added by about a trillion rubles by 2030.

The next national project is transport mobility. Its implementation will give an impetus to the development of a number of industries. First of all, these are aviation, shipbuilding, transport engineering, production of electric and hybrid vehicles. A very important aspect is the creation of high-speed traffic. By 2028, we must produce the first two high-speed trains, and by 2030, we must supply 43 rolling stock units for the high-speed road. And we focus on the production of components, aggregates and the creation of maintenance systems.

A separate area is space. Here we focus on creating a conveyor production of satellite devices, including taking into account private business for…

Vladimir Putin: For the production of space equipment.

Dmitry Manturov: Yes, for building up orbital groups for various purposes and remote sensing of the Earth.

And of course, in order to ensure an efficient launch economy, we must develop and launch the production of reusable launch vehicles.

Another national project is aimed at providing advanced solutions to the healthcare system. The main focus here is on creating new-generation medical devices and medicines. First of all, they should be aimed at the treatment of socially significant diseases. Also on the agenda of priorities is the development of technologies for cognitive diseases.

The national project "[Technological] provision of food security" focuses on the issues of genetics and breeding, increasing the production of veterinary vaccines, medicines, enzymes, food and feed additives for animals.

And of course, the emphasis on continuing the development of food and agricultural machinery, as well as equipment for animal husbandry, remains unchanged.

Within the framework of the national project "New Nuclear and Energy Technologies" in the nuclear field, this is the creation of technologies for low-power reactors.

Vladimir Putin: They are becoming more and more popular.

Dmitry Manturov: Absolutely.

Vladimir Putin: Even small accidents are not considered such from the IAEA's point of view, and even in the most unfavorable development of the situation, they do not lead to serious consequences.

Dmitry Manturov: Absolutely true, so we consider this to be in demand and will focus on it. And a waste-free closed fuel cycle, as well as the development of controlled thermonuclear technologies.

In the energy and oil and gas engineering sectors, our level of technological sovereignty now stands at 72 percent. By 2030, we aim to bring the level to 90 percent. And if we are talking about power engineering, then this is first of all…

Vladimir Putin: We tried, remember, on turbines, but now the situation is changing for the better.

Dmitry Manturov: Yes, absolutely. You have already launched a 110-megawatt plant at the Udarnaya TPP in Temryuk. This is the first task that we have implemented. It was difficult, but in the end it works today with high quality, without failures.

Vladimir Putin: We thought about what to put in Crimea.

Dmitry Manturov: Absolutely. Now we don't have that dilemma anymore.

At the same time, the task is to fully localize equipment for LNG technologies, solar and wind power generation, and, of course, energy storage devices. This is one of such important global trends, and for us too.

In the areas of energy and food security that I have outlined, we are putting a significant amount of work into the new national project "Bioeconomics". Its implementation will allow consolidating the branches of both the microbiological industry and biotechnology (all of which are located at the junction) and ensure the development of organic products for highly productive agriculture and human health.

We will also cover the segment of "Biochemistry" and permanent recycling, that is, waste processing, biofuels. And this national project, as we have agreed with you, will be finalized by the Government by April next year and will be submitted to you for approval.

Finally, as for the national project on unmanned aerial vehicles ["Unmanned Aircraft Systems"], which has already been implemented since January of this year. The main goal is to ensure a fivefold increase in production, to reach the level of independence of 70 percent by 2030. But as we see today, the pace of technology development is progressing, and I think it will come sooner.

Vladimir Putin: I think, yes, the engines are already running.

Dmitry Manturov: Absolutely. Both electrical components and controllers.

And the second priority is to provide all Russian-made components.

The third task is regulation, so that everyone understands the rules by which to operate unmanned aircraft systems.

Vladimir Putin: We have established cooperation with regulatory and law enforcement agencies.

Dmitry Manturov: Yes, absolutely.

Vladimir Vladimirovich, an important factor in the successful implementation of all our national projects is the long-term demand for manufactured and planned products. An additional incentive will be offset contracts, improving the mechanism of public-private partnership and extending the national regime to purchases by companies with state participation.

And of course, our cross-cutting strategic task is to provide personnel for all the national projects that I have reported to you about today. In the passport of each national project, this is a separate section. This is coordinated with both the Ministry of Education and the Ministry of Education to train the specialists that the industries need. If you support this approach, we will submit it to the Council for Strategic Development and National Projects for your approval in December this year.

Vladimir Putin: Yes, of course, I will definitely support you.

Some things absolutely need to be finalized – we need to ensure the market for space services. If we do not have a market for these services, we will never have enough budget money.

Dmitry Manturov: Mr President, you have set us the task of monetizing this service, taking into account the amendments to the law on space activities. This will apply to all departments, so that everyone has a budget.

Vladimir Putin: This is first and foremost. It is clear that the head of any department wants to minimize their costs, everyone wants to receive free services from Roscosmos, and ultimately this means from the budget. If they pay for it themselves, they will use these services efficiently, and Roscosmos will have a market.

Dmitry Manturov: We proceed from these principles. And of course, we also count on the commercial market, which is developing rapidly today. Today, almost no activity, no industry, there is no industry that does not use remote sensing services.

Vladimir Putin: Composite materials and rare earth metals also need to be looked at carefully. We have opportunities to work here, and to work independently. It is known what rare earth metals are, how they are needed and important. Everyone knows very well who gets them and where, how this work goes, and where monopolies are formed. But we have our own everything.

Not so long ago, the head of Yakutia told me with regret about what they have in the republic…

D. Manturov: Tomtorskoye field.

Vladimir Putin: There is, but it is "hanging". And the business structures that took over these deposits many years ago are not investing. We need to somehow talk to them and resolve this issue: either they invest, or they somehow build relationships with other companies, with the state. This is a strategically important resource that the state needs now.

Dmitry Manturov: We'll work it out, Mr Putin.

Most importantly, we rely on the use of secondary resources that arise during ore processing.

Vladimir Putin: I understand that.

Dmitry Manturov: Yes, to get oxides. The main thing was to get the technology. Today we have received the main technologies for allocation.

Vladimir Putin: We need to sort this out.

Dmitry Manturov: Absolutely, Mr Putin.

Vladimir Putin: Just like some other areas of activity "hang up".

Dmitry Manturov: We'll work it out.

Vladimir Putin: I understand that different companies have different investment plans. Well, they took it once, something doesn't work out-it happens. Both the state and private companies do this. You need to work with people simply, and that's it. Okay?

Dmitry Manturov: Of course, we will carry out your instructions.

Vladimir Putin: Good. And so, in general, of course, such projects are visible and large. And I hope that we will all be able to implement them together, and then the structure of the Russian economy will really change at the pace we need.

Thank you. [My Emphasis]

The West says Russia cannot possibly accomplish any of the above because it’s on a total war economy that can only produce weapons and nothing else. The West is guilty of projection with that suggestion, although its situation is even worse as what little it produces is inferior to and costs many times more than Russian arms. And the SMO will end freeing industrial capacity and personnel to concentrate on national projects. The Russian developmental model is being readied for export. Its primary aim is to improve the situation of the national citizenry by employing its human capital first via education and construction of the infrastructure required to support further economic growth aimed at promoting sovereignty and security—food and social security most importantly that eradicates hunger and poverty. Russia itself is still working on the eradication of poverty, which is what Siberian and Arctic development is aimed at solving. And then there’s the anticipation of the solution to the SMO that has the possibility of adding a substantial amount of territory to Russia beyond what’s been added already. There’s yet to be any public articulation about what that might mean economically as that will be hard to determine until a political settlement is completed, which deserves a separate article.

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