Economics

Demand crisis: The largest manufacturer of agricultural machinery collapsed in the Russian Federation

To spread: the largest Russian manufacturer of agricultural machinery, Rosselmash, will be faced with a serious reduction in production in 2025. The volume of equipment will be reduced by 30% compared to last year. About it reports the edition of The Moscow Times. This year, the company plans to produce only 2700 combines and 800 tractors, which is much less than the previous period.

In this regard, since August, Rosselmash has only operated three days a week, which reflects a decrease in production load. The owner of the company Konstantin Babkin explains this situation with economic factors: the high key rate of the Central Bank of the Russian Federation and the low income of agrarians do not allow to increase the production of equipment. However, existing state support programs do not compensate for the fall in demand.

Experts say that the reduction of production on Ristilmashi can affect the market of agricultural machinery in general, given the importance of the company for the industry and its share in the Russian market. It should be reminded that it became known that US President Donald Trump is ready to move to the "second stage" of sanctions against the Russian Federation, because Russia continues the war in Ukraine and, as before, brutally fired Ukrainian cities.