The situation at the region’s two largest enterprises Uralvagonzavod and Kurganmashzavod looks particularly worrying. The former was able to get out of the red last year, but mainly due an increase in the output of civil produce (railway carriages). The future of tank production at the enterprise is unclear at the moment. The Defense Ministry is only planning to have its old T 72 tanks overhauled and upgraded this year,’ Plenipotentiary Representative of Russian Federation President in Ural Federal District Evgeniy Kuivashev said in his interview to Kommersant.

As for Kurganmashzavod, things look even drearier. Since the state placed substantially more defense orders with the plant, and since the number of export contracts went up as well but the component parts supply was interrupted, the company was unable to meet its contractual obligations for the Defense Ministry in 2010. As a result, the ministry refuses to buy infantry and landing troops vehicles. This means that the situation of the city’s most important enterprise and its employees is difficult. Our plenipotentiary representation is keeping an eye on the development of affairs and keeps interacting with the Russian Government. All these issues will be discussed at the September meeting which Russia’s Defense Minister Anatoly Serdyukov and heads of the problem plants are going to attend,’ the official added.