RUSSIALINK: “Arrears now main threat for production chains in Russian economy – Belousov” – Interfax

Cash, Calculator, Pen

MOSCOW. May 6 (Interfax) – The main threat for production chains in the Russian economy is now arrears; governors must bring this problem under their supervision, said First Deputy Prime Minister Andrei Belousov, who is currently acting prime minister.

“Where do I see the problem? I see the problem in the fact that now, as enterprises are launched, breaks will start to appear in chains for creation of added value, in technological chains,” Belousov said during a meeting of President Vladimir Putin on issues of implementing measures taken earlier to support the economy and social sphere.

“Today, arrears are from my point of view the main threat to the functioning of production chains. Whether we will manage to keep these payments in check right at the beginning will depend on both the stability of workforces and the stability of the work of enterprises,” Belousov said.

“As payments will now be a problem area, many enterprises understand that in conditions of uncertainty it is better to accumulate money bit by bit and keep money for paying salaries, we have launched a program of loan financing of working capital,” he said.

“I’d like to approach the heads of territorial entities of the Russian Federation so that this process is under supervision,” Belousov said.

In addition, he said constant monitoring of major systemically important enterprises was necessary.

“I’d like to again approach the leaders of territorial entities of the Russian Federation – we sent out to each entity a list of such enterprises on the territories of the region. We have set reporting twice a week on such enterprises, meaning simply saying what level they are operating at – 30%, from 30% to 60%, or more than 60%. It is very important for us now that this information is received quickly and becomes universalized. Then we will see this picture – in what state and where these most problematic areas are,” Belousov said.