Trillions in war spending, rampant inflation and a two-decade high rate hike by the Central Bank have put Russian industry on the brink of financial collapse. About this reported the The Moscow Times.
Key branches of domestic engineering may "fall", said the general director of the Chelyabinsk Forging and Press Plant Andrii Hartung. According to him, a sharp increase in the price of loans, the rates of which in business are usually tied to the key rate of the Central Bank, can lead to a sad development.
"No competitive business can work with loans at 27% per annum, when your Chinese competitors get loans cheaper than 5% per annum," Hartung complained.
He added that Russian factories cannot withstand competition with enterprises of the defense-industrial complex and "monopolies" that lure personnel and organize salary races.
In addition, the head of the financial resources department of the Magnitogorsk metallurgical plant, Maria Ovechkina, reported that the company has reserves for half a year, if expenses are not cut. Ovechkina admitted that this plant is the largest steel producer in the Russian Federation, and is forced to reduce investments. "We are very negative about 2025."
Olga Aleksandrova, financial director of the Uralkran group of companies, also reported on the forced reduction of costs, and Natalya Yermolaeva, the operations director of the development company "Holos" complained that her company "will not take out" loans at a prohibitive rate.
Even now, every fifth company from the manufacturing sector is experiencing difficulties with repayment of loans. In woodworking, this share reaches 22-24%, in the production of leather and paper products - 29-34%, and in shipbuilding - and aircraft construction - as much as 57%. On average, companies have to give every fourth ruble of profit to pay interest on debt — and this is the highest level in the last 5 years.
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