Russian machine builders are asking the government to introduce a program of direct subsidies discounts on road construction (DST) and special equipment on the background of falling demand. We are talking about the analog program, already in effect for agricultural machinery. Informed about the difficult situation in the segment of the machinery was warned in the Association of European businesses, while stressing the need for measures aimed at the whole market and not just on the traditionally domestic appliances.”Rosspetsmash” (lobby of the domestic mechanical engineers) asked the government to include road construction engineering and manufacturing of specific components to it in the list of industries most affected by the situation with coronavirus. In a letter sent on 30 April, Prime Minister Mikhail Mishustin, said the risks of lower demand for machinery on domestic and foreign markets in the second quarter. In “Respectale” I propose to introduce a subsidy of discounts on such machines similar to the “program 1432” for agricultural machinery.Under this program, buyers can get a 15% discount on Russian equipment. The budget compensates for this discount manufacturers, spending about 15 billion rubles per year. For the DST, in fact, the only measure of support — preferential leasing. Her budget for this year laid 3 billion rubles are Also “Rosspetsmash” requests to cancel restrictions on grain exports — since may 1, the export is prohibited until July 1, since exporters have chosen a quota for this crop year. According to the Association, the export ban leads to lower prices for grain, resulting in crashes and solvent demand for agricultural machinery from farmers. “At the same time, the wholesale price of grain has no effect on the final cost of bakery products,” the letter reads.Shipments of the domestic road construction machinery in the domestic market in the first quarter, according to the “Respectale” grew by 6% to RUB 8.2 bln, while the production of Russian DST, on the contrary, decreased by 13% to 8.5 billion rubles. In General, the RCM market and machinery to Russia, according to estimates of the AEB, in January—March increased by 8%, to 2,7 thousand pieces (takes into account components and equipment produced in the factories of foreign corporations in Russia, these companies occupy about 80% market share of DST and machinery). The Association said that the figures of the first quarter do not reflect the current situation on the market, the crisis fully began to influence the industry in April. The AEB noted that do not expect growth at least in the next year, and also stated about the necessity of state support, Recalling the importance of the industry for a successful recovery of the economy as a whole, which “is impossible without the continuation of construction of infrastructure, housing and road networks”. However, the AEB saw a need in others more extensive influence on market — measures: for example, holidays paidthe car recycling fee in the budget (see “Kommersant-Online”, 23 April).Dmitry Babanskiy of SBS Consulting notes that the RCM market has already suffered and the risks of a further deterioration of the situation. In the circumstances the equivalent of “program 1432” would be a more effective measure of support than leasing. Now it is more expedient to reduce the initial costs of the acquisition, the analyst believes, rather than operating costs such as leasing payments.Olga Nikitina
