Change in 2019 GOST certification of the cement, now requiring manufacturers to conduct all transactions through a single legal entity, has complicated the work of enterprises of the incomplete cycle. Through the business Ombudsman Boris Titov market participants have asked the Minister of industry and trade Denis Manturov to adjust the standards, warning that because of innovations in some regions make no sense in cement production. But for some players the new standard guarantees protection from foreign rivals, whose appearance could bring down cement prices.Ombudsman for entrepreneurs Boris Titov appealed to the head of the Ministry of industry and trade Denis Manturov with a proposal to adjust the changes made in September 2019 in the standard “conformity Assessment. Rules of certification of cement.” A copy of the letter is “b”. Then according to the adopted edition of the GOST, the whole process of production and packing of cement should be one legal entity. According to mister Titov, it negatively affects the formation of the competitive environment, establishing preferences for certain enterprises of a full cycle. The purpose of certification of cement is a proof of quality and security that are independent from suppliers of individual types of raw materials, the document says.The reason for writing the business Ombudsman was an appeal of LLC “Krasnokamenskaya” — a joint venture of Russian Corporation “Mosstroytrans” and the Chinese “of Mansi”. The owner of “Mosstroytrans” Merabi Chochua explained “Kommersant” that the partners in equal shares from 2017 to Finance on-site TOSER Krasnokamensk (Zabaykalsky Krai) the construction of a cement plant full cycle. In it will be composed directly of the production area and packing of cement and clinker (primary product of cement production), the company planned to purchase.According to Mr. Chochua, plant construction costs around 1 billion rubles., and expenses for the organization of a full cycle, including the creation of clinker, exceed 6-7 billion rubles. “We have suspended the project pending clarifications from the authorities,” he says. The businessman adds that the agreement also accepts the government of the Zabaykalsky region: the region does not have its own cement production, and logistics costs cost of product is too high.The Ministry said “Kommersant”, the letter to Boris Titov has not yet been reported. They added that cement companies are now incomplete cycle (so-called grinding plants) can’t pass the certification of cement, but have the ability to provide services to companies to complete the cycle through long-term contracts. The subjects of the Russian Federation no restrictions for the production of quality cement, and the existing measures aimed at combating counterfeiting, infused the Ministry.However, the interlocutor of Kommersant in the cement market claims that after changing the GOST with the problems faced at least five regions are the subjects of the Russian Federation, where historically no raw materials and only worked grinding plants. He explains that the main purpose of the new measures, the maximum limit imports. “The large surplus capacity of the Russian companies will not sell to others your clinker, it can only do foreign players. But their arrival in Russia will lead to price collapse and the business of local companies,” explains a source””. According to cm Pro, at the end of 2019 the total capacity of Russian cement enterprises were 103 million tonnes, while the consumption of only 57.9 million tons.Commercial Director of “Lafarge kholsim” Ekaterina Molodtsova believes that the current wording of GOST limits the effectiveness of the existing production capacity of clinker and cement. “The ability to sell clinker will create new market opportunities for manufacturers of a full cycle and will promote a competitive environment for smaller players,” she says. Ms. Molodtsova sees merit in the introduction of mandatory certification for products based on cement: ready mix concrete, dry building mixtures, concrete and concrete products. The Union of Russian cement producers have expressed support for the current situation, indicating that the supply of cement from abroad are the source of counterfeit products.Alexandra Mertsalova, Alexei Polukhin