Equal subsidies to Belarusian and Russian machinery on Russian market since 2015

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April 22, 2016 18:53

The Eurasian Economic Commission’s Board representative from Belarus, Sergei Rumas, said that as of January 1st 2015, Belarus-made machinery sold on the Russian market will receive subsidies from the Russian budget.

If so, Belarus can count on additional sales for Belarusian producers, primarily in agricultural engineering (e.g. MTZ, GOMSELMASH), and the Belarusian government will require less funds to support the industry. Belarusian machinery makers will be able to increase capacity utilization and reduce warehouse stocks. The main risk is the bureaucracy of the Russian government in deciding about the subsidies’ allocation and their size, as well as the availability of sufficient funds.

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