Export maintenance: Arkhangelsk Oblast's second front against sanctions

Since 2022, Russia has been living under strict sanctions. They have not bypassed Arkhangelsk Oblast either — local enterprises have always been oriented towards European markets. How the region is coping with the pressure, what has been successfully import-substituted, what business the governor would engage in, and why it is important to support the People«s Award 29.RU — we discussed this with Alexander Tsybulsky.

The Most Important Economic Directions in the Region

What production is Arkhangelsk Oblast and Arkhangelsk associated with? The governor named several industries — fish, the timber industry complex with pulp and paper production, and, of course, shipbuilding.

— These are global sectors that, seemingly, are not related to small and medium enterprises, but each of them gives rise to a vast web of cooperation. Therefore, small and medium businesses here are developing very strongly within cooperative chains, — said Alexander Tsybulsky.

At the same time, as the governor noted, over the last 5-6 years, more and more tourists have been coming to the region.

— This is another direction that is developing very actively today, but it is still at the beginning of its journey. I think that the golden age of tourism in Arkhangelsk Oblast is already on the horizon, but has not yet arrived, — said Tsybulsky.

At the same time, one cannot forget that the most important thing is the people who make the image of any territory.

— Entrepreneurs are today the most in-demand, the boldest people who go into business and take responsibility, not only for themselves and their family, but also for other people whom they hire for work, — said Tsybulsky.

Import Substitution in Arkhangelsk Oblast

In 2022, the country faced strict sanctions.

— And Arkhangelsk Oblast was one of the first to take this blow, since 80% of the region«s economy depended on exports to those premium, now unfriendly markets, which closed for us in one moment. We then started using the term »import substitution« and began developing our own products in many areas. It»s like in the folk proverb — it was a blessing in disguise, — said Tsybulsky.

After 2022, it became clear that critical areas of the economy must be provided with their own technologies and products.

— Today I would no longer use the term «import substitution». I can say with absolute confidence that the products developed by our guys in Arkhangelsk Oblast already surpass in many ways those analogues that exist today in the West, — said Tsybulsky.

In Arkhangelsk Oblast, they created their own harvester head — this is equipment for felling and harvesting trees.

— We are the only region that is ready to serially produce harvesters today. Technically complex devices. And this is not just large-unit assembly, when we through various tricks via third markets brought components from other countries, assembled them here and hung a nameplate that this is Russian products. There, more than 80% is import-substituted products manufactured by our guys, — said Tsybulsky.

In Arkhangelsk Oblast, they also create software in the field of forest management and forest monitoring, which helps to correctly account for resources, down to the species and age of trees. According to Tsybulsky, there are no analogues in the world.

— We are now launching a large project on unmanned maritime systems. Last year, an unmanned boat made its first autonomous voyage to the Solovetsky Islands and back. This year, we are already planning to try it from an economic point of view, work in coastal villages and create infrastructure for unmanned cargo delivery. Also completely our development, completely our solution, — said Tsybulsky.

In the region, domestic solutions for hydraulic rotators, equipment for the pulp and paper industry, packagers, sorting lines have appeared.

— These are things that we started doing because we found ourselves in a hopeless situation. But the samples that we have already manufactured, in their technical data, surpass those that were imported from Western countries. Therefore, we have something to be proud of. And now the biggest challenge for us is how to make this product actually go into series and start occupying the Russian market, — said Alexander Tsybulsky.

Export of Products

As Tsybulsky told, last year non-resource energy exports in Arkhangelsk Oblast grew, according to various data, by 14–18%. Small and medium companies of Arkhangelsk Oblast began supplying products to foreign markets, albeit in small volumes.

— Now the challenge for export industries is very big, because most of the main productions have always been in the European part of Russia, which logistically has always gravitated towards European markets. Now we are restructuring towards China, Southeast Asia, the so-called countries of the global south. For us, these are completely new, unfamiliar highly competitive markets. Therefore, this is such a second front, — said Tsybulsky.

The governor noted that in conditions of unprecedented sanctions, it is critically important to use all tools, support manufacturers preparing products for export.

About the People«s Award 29.RU

The People«s Award is an opportunity to give an independent assessment to local companies in difficult times, believes Alexander Tsybulsky.

— I have generally, with experience, become a big supporter of decisions based on people«s opinions, the opinion of the expert community. And this is just a very good example when people themselves determine which companies they consider most important and noticeable in Arkhangelsk Oblast. When we engage in administrative work, we still mostly proceed from the statistics we receive, calculate the efficiency from the income deductions of these companies. Very bureaucratic work, — said Tsybulsky.

Another thing is when people themselves determine from their impressions which company they consider important, significant for the region.

— This indicates that the company is conducting the right social policy. And therefore, it is very important to highlight such companies. Possibly, these will be some absolute unicorns that we will now see and be able to support pointwise if they need it. Therefore, I think it is a very useful award, and the government was happy to support it.

What Business Would Tsybulsky Engage In

Once the governor mentioned that he would not mind after completing his political career to engage in business. We asked him what sphere that would be.

— Probably, it would be something related to export and international trade, since this is my main profession that I studied, and I would like to move in this direction, speaking theoretically, naturally. If talking about industries, then, probably, over these five years I have paid the most attention to the timber industry complex and have become a bit deeper in understanding it than other industries, — said Tsybulsky.

On January 30, in the government of Arkhangelsk Oblast, 100 companies will be awarded that were chosen by the residents of the region in the People«s Award 29.RU. In total, ten nominations are presented in the voting, in each of which a top ten representatives of their industry have been formed — from medical centers to coffee shops and local brands of Pomorye.

Director of Strategic Communications of Gorodskiye Media «Shkulyov Holding» Oksana Maklakova explained why the award was decided to be held in Arkhangelsk, and the head of the Center for Tourism and Culture Development of Arkhangelsk Oblast Yekaterina Kuznetsova told why entrepreneurs and residents of the region should participate in it.

To participate in the People«s Award of fellow countrymen was also called for by famous TV presenter Alexander Belkovich. To note worthy representatives of business is considered important by the head of Severodvinsk Igor Arsenyev.

The system is transparent and honest, victory cannot be bought.