Russian decree by Putin allows products from DPR and LPR to enter the Russian market without restrictions.
Following the decree on economic humanitarian aid signed by Vladimir Putin, allowing products from the DPR and LPR (Donetsk and Lugansk People’s Republics) to enter the Russian market without restrictions, including for public procurement, the first products from the Donbass benefiting from this decree are starting to be exported to Russia, thus breaking the economic blockade imposed by Ukraine
On 15 November 2021, Russian President Vladimir Putin signed a decree on economic humanitarian aid to the DPR and LPR, allowing products from the two Donbass republics to be exported to Russia without restriction, thus gaining access to the Russian market, including public procurement.
Following this decree, a forum dedicated to the economic integration of Donbass and Russia was organized in Donetsk in December 2021 to facilitate the harmonisation of legislation on both sides of the border.
This work is finally bearing fruit, as the Enakievo meat processing plant has just sent its first batch of sausages (1.5 tonnes) to the Rostov region, thanks to this decree.
The factory, founded in 1930, was one of the main sausage factories in Ukraine and the first DPR enterprise is the first have taken steps to benefit for the Russian President’s decree from December 2021.
This development of products from the Donbass republics into the Russian market has been commented on by the DPR Ministry of Industry and Trade as a break in the economic blockade imposed by Ukraine.
“The decree of the President of the Russian Federation is a new economic reality for the industrial enterprises of our Republic, as it officially opens the commercial market necessary for the development of industrial production. This political decision breaks the economic blockade of the Republic established by Ukraine,” the ministry statement said.
The ministry stressed that DPR industry has already started to reorient its production for export from 2021, with export volumes increasing by 10% in the first 10 months of the year, compared to the same period in 2020. Last year, the share of exports to Russia amounted to 80.1%.
“Monitoring of commodity data included in Russia’s unified information system for procurement shows that the Republic’s leading exporters have the potential to participate in public procurement, to meet the needs of the Russian state and municipalities. The industrial complex is ready to increase production volumes, sell commodities and establish new economic ties with Russian partners,” the ministry added.
The other direction in which industry in the DPR and LPR could develop is Syria, which has a great need for building materials, medicines and other items and which, subject to Western sanctions, has difficulty in obtaining supplies from most countries. However, as the two republics are not recognized by the international community, they are not affected by these sanctions.
For the past two years, the DPR has participated in the annual “Re-build Syria” forum, and in 2021, the authorities of the Republic approached the Syrian ruling party to improve cooperation between the two countries.
And this cooperation between the DPR and Syria is expected to increase further in 2022, according to a statement by the Republic’s Foreign Minister, Natalia Nikonorova.
“Last year was very successful and fruitful in terms of developing cooperation with the Syrian Arab Republic. In 2021, the DPR delegation made three working visits to Syria,” Nikonorova said. “Thus, a very solid foundation has been laid for further productive interaction, which we hope will become even closer and more diverse in 2022.”
She qualified the signing of a cooperation agreement between the Donetsk Republic public movement and the Syrian Baath Party as a major achievement of 2021, as well as numerous meetings between DPR representatives and political leaders of the Syrian Arab Republic.
“In addition, last year our representatives participated for the second time in the international exhibition “Re-build Syria”, during which they presented an export catalogue of the Republic’s industrial enterprises and conducted negotiations with Syrian and foreign participants of the event on cooperation and investment issues,” Nikonorova added.
With the new opportunities to Russia and Syria, the DPR and LPR have the opportunity this year to finally get their factories up and running again, and thus recover their economies that have suffered from the war and the economic blockade imposed on the Donbass by Ukraine.