Luzhkov thanked America

Moscow mayor fears WTO and demands innovation

While federal authorities have been making a lot of efforts for years to finally join the World Trade Organization, Moscow Mayor Yuri Luzhkov said that he is grateful to America for refusing to agree on Russia's entry into the WTO. “The longer we do not join the WTO, the better for the real sector of the economy, for industry, for agriculture,” said the mayor. Noting that only those involved in the oil production, gas industry and metal are interested in the WTO, that is, with resources that are either directly extracted from the subsoil or are products of the first stage, the mayor said that “all other industries can only receive complications".

The reason for another attack on the WTO was the consideration at yesterday's meeting of the capital's government of measures to stimulate the growth of Moscow's gross regional product. In her report, the head of the economic policy department, Marina Ogloblina, noted that there is only one way to ensure a doubling of Moscow's GRP by 2009, as well as to protect the capital's industry during Russia's accession to the WTO - by relying on high technology. According to the draft resolution, next year it is planned to create a venture fund in Moscow with an authorized capital of at least 1 billion rubles. to support innovative enterprises, as well as provide tax benefits to manufacturers of high-tech equipment. In accordance with the draft resolution, it is also planned to allocate money from the city budget for the construction of an IT technology center to stimulate the export of software products. An important part of the proposed program also included measures to train highly qualified workers.

Having approved the draft resolution, the mayor moved on. Making it clear that he does not particularly count on federal legislators, Yuri Luzhkov instructed his subordinates to independently develop amendments to the Tax Code aimed at stimulating innovation. Moscow proposes to exclude expenses on imported equipment and technological innovations from the tax base of enterprises, as well as to exempt small innovative enterprises from income tax for two years.

In addition, it is planned to strengthen the protection of intellectual property by amending the Civil Code of the Russian Federation. Ironically, it was the last point that was one of the main obstacles to Russia’s entry into the WTO, which was so disliked by the Moscow mayor: the American side has recently actively demanded that the Kremlin strengthen the fight against counterfeit pirated products produced in violation of copyright. So here Yuri Luzhkov, guided by the best intentions, actually called on his subordinates to join forces with the feds, who were stuck in negotiations with Washington.

According to the capital's mayor, Russia needs to use the remaining time to create its own market for the production and consumption of industrial products. “Only in this case will our accession to the WTO be soft and unimpactful, otherwise it will take place in shock therapy mode,” said the mayor, calling for immediate efforts to “put in order” industrial production. According to the mayor, special attention must be paid to agriculture, “so that a business that has already gained a certain potential goes into agricultural production and changes the situation there, forming large, ultra-modern complexes.”

There is no doubt that the cautious position of the capital's mayor will be supported by many Russian regions, but it is unlikely that Yuri Luzhkov's initiatives will be received with understanding at the federal level. It is quite natural that the Moscow mayor is lobbying for high-tech production concentrated in the capital, as well as agricultural holdings, the creation of which his wife Elena Baturina is successfully creating. However, behind the scenes of federal government, representatives of the oil, gas and metallurgical industries have much greater influence than industrialists and farmers. And the ministers of the economic block of the government, who oversee innovation activities, the creation of technology parks and the development of IT technologies, are unlikely to be delighted with the fact that the mayor of Moscow is trying to seize the legislative initiative from them.

Alexander GUDKOV