CHALLENGES FOR RUSSIAN AGRICULTURAL EQUIPMENT SECTOR...

Although there are prospects for certain types of equipment market growth in Russia there are also serious in the market:

High interest rates for purchasing agricultural equipment. Current interest rates for the purchase of foreign equipment from Rosselkhozbank, Rosagroleasing and Sberbank vary from 25 to 27%, and a new proposal will further restrict purchases and prohibit Rosagroleasing from financing foreign equipment.

Reduction in government subsidies for agricultural producers;

Low growth in foreign investments in the sector;

Unstable demand for agricultural equipment, due to the financial instability of Russian farming enterprises; 

and a utilization fee introduced in February 2016, which imposes prohibitive fees for agricultural equipment older than three years.