Russian machine building enterprises to have a hard time competing with Western companies upon entering WTO, claims Ust Katav Wagon Works

‘The process of Russia joining the World Trade Organization requires some protectionist policy for the machine building enterprises on the part of the government,’ First Deputy GD of Ust Katav Wagon Works Viktor Krasavin said to UrBC representative.

‘Some 50% to 60% of the equipment, buildings, and machining facilities of the companies operating in this field are quite worn-out, so our enterprises will have a very hard time competing with their Western counterparts; in fact, this might be virtually impossible,’ Mr Krasavin claims.

‘Some large enterprises are more protected as they receive the orders from the state, that is, they have some guaranteed orders for a certain period of time. A lot depends on the type of export a company practices, too, I mean, whether it supplies its goods on the home or foreign market,’ Mr Krasavin observed.

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