Duties decrease will not influence implementation of Investlesprom’s project

Alice Fialko
Vedomosti
Customs Union Committee decision (Russia, Belorussia and Kazakhstan) on coated paper import duties decrease from 15% to 5% was published on website yesterday. In 30 days it will come into force, the new rate will be effective during nine months.
Polygraphists and publishers strived for duties decrease from the beginning of the crisis: in Russia this paper is not produced and due to high duties about 70% of Russian magazines are printed abroad. However timber merchants disputed against: at the end of 2009 General director, Investlesprom, Dmitrii Maslov wrote a letter to the first vice-president, Victor Zubkov, with a request to conserve the rate of the duty, later on Vladimir Chuiko, Industry Association “Bumprom” chairman, joined him. Three Russian companies have already declared about their intent to produce coated paper. However Russia and Kazakhstan already at the end of winter decided to meet publishers half-way, and now Belorussia agreed to decrease the duty.
Paper import will become chipper and publishers will have incentives to print magazines in Russia, believes the president of Publishing House “Sem’ dney” Dmitrii Birukov, as long as polygraphists - to invest into equipment modernization. According to him duty decrease will not make magazine products chipper but will let to freeze prices for it for a long time. “Olma-Press” representative found difficulty in forecasting print products’ price dynamic.
The measure can turn out to be useful for timber merchants as well, Birukov is sure: duties decrease will contribute to domestic demand growth for coated paper that is why it will be profitable to invest into its production. Timber merchants have not evaluated their benefits yet. Marketing and Sales Director, Investlesprom, Alexey Vdovin doesn’t believe in the future demand growth. Duties decrease will not influence the implementation of Investlesprom’s project, he assures, but can increase it’s pay-back periods. Duties decrease does not favor coated paper production capacities construction, - “Ilim” group representative is disappointed. He hopes that consequently 15% rate will be restored. Decision of prolongation or change of the rate can be adopted if the government of one of the countries will suggest it, - tells Customs Union Committee employee.
It is early to evaluate duty decrease effect – will it help print market and impede timber merchants, - tells Dmitrii Baranov from “Finam management”. To take further decisions, functionaries will evaluate statistics of foreign trade and print market development in Russia, he thinks.