Russia refuses production of the Ukrainian plants

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As The Kommersant — Ukraine edition knew, some Russian customers, in particular "Power Machines", started refusing the Ukrainian production. In case of further deterioration of a situation the majority of the enterprises which are guided by the Russian market, will suffer serious losses. However, mechanicians most of all can suffer, volumes of which deliveries of production to Russia only for the I half-year made 2,49 billion dollars.

The general director of JSC Harkovavtomatika Evgeny Kisel told yesterday about the arisen problems with the Russian suppliers. "Last week we began difficulties with deliveries of production to Russia. Our constant customer - Power Machines concern - refused to buy the last party of the equipment worth 35 million dollars, having referred to that гостаможслужба Russia for the last month tightens a customs clearance of the equipment arriving from Ukraine. I am sure that these delays are connected with deterioration of the relations between the countries", - he told.

In a press - service of "Power Machines" yesterday comments refused. However, the high-ranking source in JSC RAO UES of Russia declared: "If tension with Ukraine in the political relation is fueled, the company can reconsider conditions of cooperation with the Ukrainian suppliers of turbines, for example with "Turboatom".

Earlier already it was reported that deterioration of relationship of Ukraine with the Russian Federation from - for wars in Georgia provoked the Russian side to application of economic sanctions. At the beginning of September the Russian news agencies reported that vice-the prime minister of the Russian Federation Igor Shuvalov charged the first to the Russian Ministries of Economics, to Minpromtorg, the Ministry of Foreign Affairs, the Ministry of Agriculture and the Ministry of Finance to develop offers on protection of the market of the country in connection with the entry of Ukraine into the WTO. And still on August 15 Rosselkhoznadzor forbade import to Russia the Ukrainian powdered milk, and also reduced number of the Ukrainian suppliers of cheese. According to "Ukrainian Club of Agrarian Business" association, in 2007 from Ukraine 49,7 thousand tons of cheese were exported to Russia for the sum of 221,7 million dollars and 5,6 thousand tons of powdered milk for the sum of 23,3 million dollars.

The ban on import of powdered milk isn't critical for the Ukrainian producers - in the Russian market only 10% of all volume of export of this product are on sale. Exporters of cheese, most likely, will be able to find other sales markets. For mechanicians loss of this market bears serious threat. Only for the first six months of the current year the total amount of export of the Ukrainian goods in the Russian Federation made 7,84 billion dollars, of them, according to Federation of employers of Ukraine, 31,7% (2,49 billion dollars) were the share of machine-building production.

"Deterioration of the relations with Russia will considerably be reflected in work of the enterprises. If the situation develops the same way, we risk to lose 3,5 thousand highly professional employees, to replace which it will be impossible", - the chairman of the supervisory board of JSC Gidrosila Group Pavel Shtutman speaks. The general director of GP "Elektrotyazhmash" Vitaly Cherednik agrees with it: "In fact, the branch became the hostage of a political situation. Certainly, input of new sanctions will strike both across Ukraine, and across Russia. However Russia such country where the policy can have bigger value, than economic feasibility".

Experts share fears of participants of the market. The analyst of IK Dragon Capital Taisiya Shepetko claims: "The Ukrainian mechanical engineering and Russia as a sales market are interdependent but if the situation was aggravated and this market would be lost, partially we could compensate losses due to deliveries of the gas equipment to Turkmenistan and Uzbekistan and cars to Kazakhstan and Belarus. However such replacement would be incomparable". The analyst agrees with it "Renaissance Capital" of Yuli Romanenko: "For mechanicians it is necessary to speak about market replacement sektoralno. We could deliver the gas equipment to the countries with developing gas branches. For today serious investment programs in this branch exist, in particular, at Azerbaijan, Kazakhstan and Turkmenistan. Cars would be delivered mainly to CIS countries - Belarus and Azerbaijan, - however the quantity of a rolling stock of these countries is much less than needs of the Russian railroad".


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