How Russian Industry Is Sinking into Crisis Due to the War
The Rostselmash plant, the largest agricultural machinery manufacturer in russia, has reported a record drop in sales. To avoid mass layoffs, the company has shifted to a four-day workweek, with its management calling the past year the worst in a decade.
▫️ After the start of russia’s full-scale invasion of Ukraine, the plant lost its key export markets—the EU and the United States. Today, it supplies agricultural equipment to African countries, but export volumes remain far below pre-war levels. Sales have been steadily declining, with a 30% drop just in 2024.
The situation with Rostselmash is a clear example of how the war is hitting russian industry. And it’s not just about one factory—this is a systemic issue. The minimal industrial growth statistics in russia confirm this trend. Yet instead of focusing on supporting strategic industries, the Kremlin is pouring vast resources into the war, dragging the country into an economic crisis.
