Production of construction machinery in Russia close to collapse

The cost advantage from lower energy prices has narrowed significantly in recent years, as Russia has been forced to reduce the gap in energy prices as a condition of joining the World Trade Organisation. Furthermore, with obsolete production facilities in most cases, Russian manufacturers have to increasingly use Western parts in their machinery to be able to increase competitiveness. All of these factors have inevitably led to rises in the prices of the final products, particularly in 2014 and 2015 when the plummeting rouble has made the import of components much more expensive.

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