Equal subsidies to Belarusian and Russian machinery on Russian market since 2015
The situation has not changed
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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Once a week, in coordination with a group of prominent Belarusian analysts, we provide analytical commentaries on the most topical and relevant issues, including the behind-the-scenes processes occurring in Belarus. These commentaries are available in Belarusian, Russian, and English.
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