NOVO-OGARYOVO, April 24. /TASS/. The demand for high-technology products has declined dramatically because of the coronavirus, President Vladimir Putin said on Friday.

"The coronavirus epidemic disturbed the pace of economic, business life in Russia and in other countries. Many companies found themselves in very tough conditions actually at the same time," the head of state said.

"The demand declines abruptly, including for complex high technology products; cooperation ties and chains are affected," he noted.

"The domestic automotive industry is dealing with the consequences of the epidemic and its indicators largely reflect the status of the consumer market and the economy at large," the president stated.

Twelve automakers cleared for preferential loans

Twelve Russian automakers can expect to receive preferential loans for working capital replenishment within systemic companies’ support framework, Vladimir Putin announced.

"Twelve Russian automakers are in the list of systemic companies, that is, the ones playing an exceptionally important role for our economy," Putin said.

The program of preferential loans for working capital replenishment is stipulated for such companies, he added. "We agreed at the meeting with the banking community [on April 23 — TASS] that this program should start working from the coming week," Putin said.

"I am confident that the automobile industry, just as the construction complex, can become one of the basic, the backbone sectors for recovery of the economy on the whole," he added.

Situation in car manufacturing sector

The current situation in Russia’s car manufacturing sector is more difficult than the financial and economic crisis of 2008-2009, President Vladimir Putin said at a meeting on issues in the automobile industry when commenting on statements by Kamaz Board Chairman Sergei Kogogin.

"We addressed the crisis recovery in 2008-2009, I remember all our discussions and measures that we assumed then," Putin said. "The proposals that you just made are not much different from those made during that period, though the current situation is more difficult than in 2008-2009," he added.

"Back then the global financial crisis came to Russia from abroad, whereas now the pandemic substantially restricts business activity inside the country in a whole number of areas," the president said, noting that "in this sense the situation is even more difficult."

When commenting on measures to support Russia’s cars manufacturing sector announced by Kogogin, Putin said that such ideas have been discussed with the government in one form or another.

Particularly, the company’s board chairman proposed allocation of additional funds for programs on subsidized car lending and car leasing, as well as public transport purchases.

Prospects for car dealers

The head of state vowed that car dealers will be among the first to open after the epidemiological situation improves. 

"We understand that the dealer network should work. As soon as there is an opportunity in terms of safety of citizens, these [dealers] will be among the first enterprises to open," he stated.