Rostselmash: Competing with Belarus is more difficult than with China

 In an interview with Kommersant, Co-Owner of the enterprise Konstantin Babkin complained about unequal conditions of competitions. Rostselsmash recalled that Belarus has prefential loan, and a buyer can purcashe a combine harvester assembled in Belarus, receiving approximately 15% in subsidies per year from the neighboring country's budget. 

There are no privileges for Russian agricultural machinery, and Chinese machines "did not go down well" with consumers. Subsidies from the Belarusian budget work: in 2021, manufacturers from the neighboring country occupied 17% of the Russian combine harvester market, and in 2024, their share increased to 40%. 

According to the co-owner of Rostselmash, it is currently Belarusian companies that are "squeezing out" Russian competitors from their own market, and this is happening "due to absolutely unequal competition." 

The expansion of Chinese manufacturers is not so dangerous yet. According to Konstantin Babkin, products from the Middle Kingdom are capricious: they break down in extreme heat and frost. There are also problems with service. 

However, without the recycling fee, it would be difficult to compete with China in the long term: their products are 30% cheaper, and companies learn quickly. The recycling fee also allows Russian companies not to worry that Trump will provide benefits to John Deere and force domestic producers to survive. 

Nevertheless, Rostselmash does not see a systemic policy aimed at developing the industry. It is still much more expensive to produce agricultural machinery in Russia than abroad, and the situation for machine builders is critical due to high interest rates and overstocking.