The dynamics in the agricultural machinery market in Russia are alarming — sales of agricultural machinery in Russia fell by more than 30% at the beginning of 2025. This was announced by Konstantin Babkin, co-owner of Rostselmash.
Several factors led to this difficult situation. The key problem was the high interest rate. This has led to the fact that it is more profitable to keep funds on deposits and receive interest payments than to invest them in agricultural machinery.
The second point is related to the fact that — again, due to the key rate — government support has decreased. More than 90% of government support is subsidies on loans, in particular preferential leasing. Since the rate soared last year, the Ministry of Agriculture has to spend more money on servicing previously issued loans.
The third factor is the duty on grain exports, which reduces prices and profitability in the domestic market.
Farmers are in no hurry to purchase agricultural machinery, it is stagnating in the warehouses of enterprises.
The total volume of agricultural machinery production is 237 billion rubles, and 60 billion rubles are in warehouses, which is far beyond normal parameters. It is especially difficult for Rostselmash: 40% of our annual output is on the sites.
According to Konstantin Babkin, many projects had to be put on the back burner.
We planned to invest in the production of hydrostatic transmissions, build a new foundry to produce gearbox housings. But all this has been postponed indefinitely.
He stressed that the market prospects are now vague, and production is likely to be on the verge of survival.
Earlier www1.ru reported that Russia is almost completely dependent on foreign machine tools.
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