Russian production of construction machinery near to collapse
According to PMR, during the past two decades Russian producers of building machinery have allocated insignificant amounts for research into, and development of, new kinds of equipment and improvements to the existing product range, mostly because of the limited financial potential. 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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