Russian regions driving forward light industry & fashion

Russian regions, especially Ivanovo and St. Petersburg, are turning out to be the main players in driving forward both the light industry (as the Russian textile and apparel industry is called) and fashion. The Ivanovo region, located in the European part of the country, accounts for 80 per cent of the entire Russia’s cotton fabric manufacturing.

Further, construction of a synthetic fibre plant is scheduled to begin in the summer of 2017 in the Vichuga special economic zone (SEZ) in the Ivanovo region. Synthetic fibre is not yet produced in Russia, and the to-be constructed plant has already secured orders for 80 per cent of its proposed production capacity, Russian news agency Tass reported.

The Vichuga SEZ will also include an industrial technology park built to accommodate small enterprises that will use synthetic fibre to produce finished products.

Another important driver of the light industry in Russia is the St. Petersburg light industry development programme until 2020. The programme includes a set of measures to support small businesses in the textile and apparel sector.

In addition, the city is also building an industry-specific business accelerator to promote new designers, including through the use of advanced technologies like 3D printing, robotic sewing machines and others. The project ‘St. Petersburg as the Centre of High Fashion and Light Industry’ won three nominations of the national competition organised with the support of the Russian Agency for Strategic Initiatives.

Even the Russian government is supporting the growth and development of the light industry. The anti-crisis plan for 2017 provides for RUB 2.2 billion capital inflow into the sector, which will be in the form of subsidies to finance current manufacturing operations, purchase of domestically produced fabrics, upgrade of production facilities, and import substitution projects.

Earlier this year, the Russian Parliament had passed a bill that allows textile, leather and apparel manufacturers with more than 250 employees to qualify as medium-sized rather than large businesses. As a result, these businesses get access to cheaper loans and government-supported SME programmes.