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ILGIZ VALITOV: IMPLEMENTATION OF IMPORT SUBSTITUTION INVESTMENT PROJECTS IS ONE OF THE MOST IMPORTANT STRATEGIES FOR RUSSIA’S DEVELOPMENT

The participation of Ilgiz Valitov,one of the country’s leading top managers, in the

ILGIZ VALITOV

The participation of Ilgiz Valitov,one of the country’s leading top managers, in the implementation of an investment project in the Lipetsk region has almost halved Russia’s dependence on foreign supplies of antitumor medicines and antibiotics.

In recent years import substitution issues are among the most relevant and discussed in terms of development, prospects and security of the domestic economy. But it happens that behind the words, declarations, some theoretical calculations there are no specific cases orimplementedprojects. We will cite one of the brightest examples of the entire manufacturing industriesdevelopment, thatmade it possible to offer products successfully replaced similar imported ones. This is oneof the effective, targeted investment projects implemented with the participation of Ilgiz Valitov, Head of the Directorate for Natural Resources and Construction of Vnesheconombank:the opening of a large pharmaceutical production facilityin the Lipetsk region. The credit line from VEB was provided to Rafarma JSCfor the construction and launch of new production of antitumor medicinesin the region. The project received a positive expert assessment from Vnesheconombank specialists and personallyIlgiz Valitov, who was directly involved in the consideration and implementation of this investment program, determining the amount of funding at 2.7 billion rubles.

In addition to economic performance indicators of production efficiency, the socially significant aspect of the project was taken into consideration. The main goals and objectives are to fill the domestic pharmaceutical market with Russian-made products.The citizens’ life and health dependsonthe kind of products as well asthe country’s health facilities. In addition, the task of import substitution of this important pharmaceutical direction has been set and completed.

It should be noted that at the implementation stagethe project was also supported by the government of the Lipetsk region, the Ministry of Health and Social Development of Russia, as well as the Federal Ministry of Industry and Trade.

LARGE-SCALE, INNOVATIVE

As shortterms as possiblethe site and much of the infrastructure were prepared for the opening of a new plant by the administration of the Lipetsk region together with the VEB Directorate of Natural Resources and Construction, headed by Ilgiz Valitov, in the «Terbuny» Special Economic Zoneof the regional level industrial-production type (EEA RU «Terbuny»).

With the participation of Ilgiz Valitov, the full range of organizational and financial issues for the construction and launch of modern pharmaceutical production was considered.

It should be noted that one of the main tasks in the construction of such facilities is compliance with a number of environmental regulations. Thus, the site for the future plant was chosen on the condition that it should not be located on the agricultural contaminated place. It should not have side water drains and be located away from other industrial facilities. Such conditions are of paramount importance for producing oncological substances. The location was carefully selected taking into consideration all environmental standards. In the end, all the conditions have been met.

Ilgiz Valitov, studying and analyzing the prospects of the new plant construction, together with specialists set the task of launching a full-cycle pharmaceutical complex. This task has been successfully solved, including the aim of creating the most efficient production facility.

Today, RafarmaJSC is one of the strategic enterprises for the Lipetsk region. More than 400 jobs have been created at the factory. The full cycle pharmaceutical complex in the territory of the EEA RU Terbuny is one of the largest innovative projects of the pharmaceutical industry in modern Russia. The production of antibiotics and cytostatic agentsis key direction of the strategy for the development of domestic pharmaceuticalindustry implementation, including in the framework of import substitution programs (the federal program «Strategy for the pharmaceutical industrydevelopment in the Russian Federation»).

PRODUCTS ARE COMPETITIVE IN PRICE AND QUALITY

The planthas essentially become an innovative platform for the production of antibiotics, antitumor and other medicines in accordance with modern quality standards. The volume of medicines produced in the Lipetsk region has actually halved procurement of imported drugs that were previously supplied to the domestic market. In particular,already today the production of antitumorpharmaceuticalsmeets the needs of six regions of Russia today: Moscow, Moscow region, Krasnodar region, Tatarstan and Bashkortostan.

Let us repeat that the investment project implemented with the participation of Ilgiz Valitov, in general, made it possible to reduce the share of such imported pharmaceuticalson the domestic market by more than half. In addition, the cost of the medicinesis competitive in the pharmaceutical marketand the target was laid down at the beginning of the investment project.

For reference: RafarmaJSC is an innovative full-cycle pharmaceutical complex for the production of antibiotics, antitumoragents, as well as other medicines in accordance with the EU GMP standard. The planton the territory of EEA RU «Terbuny» was built by the largest European companies. RafarmaJSC production complex has the optimal layout — five separateworkshops with isolated air and watertreatment systems — for the production of various groups of antibiotics and cytostatics in accordance with the EU GMP standard. The company is equipped with production lines of the world’s leading manufacturers of pharmaceutical equipment: GLATT, Kilian, RomacoMacofar, IMA, CAM, Fedegari, Tofflon, etc. The Pilot Department in the «clean» premises allows conducting clinical trials and pharmaceutical examinations, to scale up R&Ddevelopments, to work out regulations before launching a new product into industrial production.Thecompany has equipment and licenses for the production of medicines in 15 dosage forms.Allstages of the production process as well as construction and equipment installation are controlled by the Quality Control Departmentand the authorized representative of the Russian Ministry of Health. The company is fully staffed by highly qualified engineers, technologists, chemists, microbiologists, quality specialists.

STRATEGICALLY IMPORTANT DECISIONS

The new RafarmaJSCproduction facility created from scratch in the Lipetsk regionis one of the successful projects of Vnesheconombank andpersonallyIligizNailevich Valitov. (Over the years of his work in the financial sector about 200 investment projects in various spheres and sectors of the economy were implementedwith his participation.)A detailed analysis of the markets and the adoption of strategically important decisions allowed VEB to pursue a competent credit and financial policy in the various sectors of the domestic economydevelopment.

Ilgiz Valitov emphasizes that national interests and domestic productscompetitivenessisamong the decisive aspects in the implementing the import substitution policy. The opening of production facilityin the Lipetsk region is a striking indicator of this approach, which allows resolving issues of Russia pharmacological security. Moreover, today JSC Rafarma’s products have a high potential both for substitution expensive medicines produced abroad with high-quality Russian products at an affordable price, and for export.

For reference:

— Today, the volume of tax payments of Rafarma JSC in the Lipetsk region is approximately 4 billion rubles.

— The company is included in the Register of Promising Projects in the Pharmaceutical and Medical Industry of the Ministry of Industry and the Ministry of Trade of the Russian Federation.

— Rafarma’s production facilities are able to provide high-quality and effective antibiotics and antitumormedicinesfor certain items from 15% to 100% of the Russian medicine market at a price 1.5-2 times lower than imported analogues.

— The plant produces (annually): 1.5 billion tablets, 180 million solid gelatin capsules, 62.5 million vials for injections, 7.5 million vials of suspensions, 18 million packets of «sachets» — preparations packaged in flat four-seambags.

— The company actively supports the projects of the PROTEK CharityFoundation, which cooperates with the pharmaceutical industry. The leaders of the Rafarma JSC in the Lipetsk region are guided by the principles of business philosophy, where the creation a healthy future for Russia is an integral part. The company participates in the main charity projects of the Foundation: «Health for People,» «New Life» and a number of others. The fund works in85 regions of the country and provides free medicines and free medical care for the socially vulnerablegroups of people.

IN ACCORDANCE WITH STATE PROGRAMS

The investment policy of financial companies is implemented in accordance with the state economic developmentprograms, including import substitution. It goes without saying that such substitution is not carried out randomly, but in accordance with adopted strategic programs and projects, and it also aimed at the integrated strategic developmentof the country, changing its role and image in the world markets. It is extremely important to outline the principles, tasks, the purposes, mechanisms, ways and instruments of their realization. The experience of Vnesheconombank and personallyIlgiz Valitov, the Head of the VEB’s Natural Resources and Construction Directorate, as practice has shown, made it possible toimplement the most importantinvestment projects. The most important tasks were carried out to create modern, innovative, competitive production facilities in Russia which are aimed at creating added value, making a profit, and opening new jobs. Ultimately itis targeted at the development the industrial and production potential of Russia.

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