Yuri Vorotnin: In difficult circumstances, a strong partnership is even more important than money.

Russian Business Guide magazine. March of 2020.

– Mr. Vorotnin, many economists compare the current situation with the collapse of the USSR and the beginning of the 90s. Do you think such an analogy is appropriate? 

– Yes, but only at fi rst glance. Indeed, at that time the economic ties established over decades collapsed in a matter of months. Industry came to a halt, the country faced a total defi cit. It took many years to restructure and rebuild the economy. 

But there is a key factor that for some reason almost nobody remembers: there were no entrepreneurs in the country at that time – there were no place for them in a planned economy. More than 30 years have passed since then, and Russia has grown several generations of active people, hardened by all kinds of crises. Th ese are people who are intent on creating, organizing and taking responsibility.

So the present situation is different. Russian business has actually learned much over this time. For example, the industrial construction industry has changed dramatically in the last 25 years. Obsolete material- intensive methods have been replaced by modern construction solutions, technologies and materials. And if in the past it took several years to build a plant with an area of 30,000 sq. m, now it takes us six months or a year to build such facilities. In addition, we have learned a lot from Western customers and are ready to share our experience with Russian industrialists. 

– Now investors are forced to save money. What advice would you give to entrepreneurs planning to build warehouses and factories?

– On the one hand, not wait for the grass to grow. Yes, the risks are considerable, but the window of opportunity for import substitution will not last forever. We live in the time when it may be easier to build a factory for the production of this or that product than to look for reliable suppliers. 

But if you have decided to build, do it with a skilled and experienced partner. Aft er all, the construction of large projects is a complicated business in itself, and especially so now. Without solid experience and years of professionalism, it is impossible to complete a project within a predictable time frame and at a reasonable cost. It is necessary to estimate risks appropriately, and young builders cannot do it a priori: their specialists have never faced such problems and do not understand what it will cost to solve these tasks in practice. Th at is why they give an unrealistic and undervalued price, and win the tender. But as early as the fi rst stages of construction, they encounter pitfalls that delay the project by months or even years. In the current situation, this is disastrous. So I repeat: strong business relations with an experienced partner are now more important than money. 

– How has your work been affected by the sanctions?

– We had to adapt dozens or even hundreds of processes: design, procurement, logistics, provision of machinery, skilled workers and engineers. However, thanks to the experience we had accumulated during the crisis, this was easier for us than for other colleagues in the construction industry. Yes, there were difficulties with the purchase of some equipment. We had to look for alternative suppliers in a short period of time and rearrange procurement. Customers have become even more careful in optimizing their budgeted costs. 

We, on our part, meet the interests: off er less material- intensive design solutions, replace expensive imported equipment with similar domestic ones, offer flexible financing of construction. We take an active part in reconstruction projects of existing old facilities. 

At PSO-13 we have long realized that no matter what happens, we will always build plants, factories, warehouses, residential buildings, schools and hospitals we will help people and businesses to fi nd their own homes and workplaces. 

These are tough times, indeed. But this only means that we must do our work with tripled energy. With calmness, pragmatism and without unnecessary thinking. We must see the target and believe in ourselves.

Prepared
by Mikhail Grunin

Full version of the magazine you can read here.