Vyacheslav Kharitonov, Regulatory Risk Assessment Practice Expert at Baikal Communications Group, notes that the key impediments to the growth of exports of domestically manufactured agricultural machinery continue to be unfavorable “rules of the game,” namely: the level of the Bank of Russia’s key interest rate, reductions in state support measures, as well as increased tariff and non-tariff pressure on agricultural exporters. According to him, declining profitability among agricultural producers and the weakening of domestic demand significantly restrict the export potential of agricultural machinery manufacturers, despite support measures enacted since 2017. At the same time, the stability of Russian manufacturers is primarily grounded in the domestic market, which accounts for the overwhelming majority of agricultural machinery sales.

In Kharitonov’s opinion, while additional incentives could indeed support the industry, a significant breakthrough in foreign markets is unlikely without first stabilizing the domestic market and easing the key interest rate.

For more details, see the full article in Agroinvestor.

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