• 01 Jul, 2025

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Rostselmash suspends 15,000 employees for one month.

After significant declines in sales and production due to missing components, the Russian manufacturer Rostselmasch halts its production. Markets are collapsing, customers have no money.

The Russian agricultural machinery manufacturer Rostselmash is facing significant sales and production declines due to a lack of components. Market demand is shrinking, and customers are facing financial constraints.

Rostselmash, the Russian agricultural machinery manufacturer, is experiencing major sales issues and has decided to send its entire workforce home for four weeks.

The global agricultural machinery industry has been struggling with a severe sales crisis for some time. While there have been improvements after restructuring and reducing inventories, the Russian manufacturer Rostselmash is not seeing the same recovery. The economy in Russia is also feeling the impact of the conflict in Ukraine.

Markets are collapsing as the country shifts to a wartime economy. Observers predict that the economy may not be able to sustain this for much longer. Some industries are already facing significant contractions or complete collapse due to the loss of crucial export markets, as reported by t-online.

An alarming development is the recent announcement that Rostselmash, one of the largest companies in the agricultural sector, is sending its total of 15,000 employees on a one-month leave. The company based in Rostov-on-Don is the leading manufacturer of agricultural machinery in Russia.

Due to declining demand over the past three years of conflict and extensive cost-cutting measures, the company is now forced to halt production. Prior to this decision, production lines had already been slowed down, and 2,000 employees had been laid off.

Farmers are facing financial difficulties as reported by t-online citing the "Moscow Times." Sales of combine harvesters are said to have dropped by 76% and tractors by 48% between the first quarter of 2021 and 2025. The revenue loss last year is estimated to be around €965 million. Western sanctions likely contributed to the shortage of essential components for manufacturing. Furthermore, additional EU restrictions may come into effect as early as Tuesday.

Even if the machinery rolls off the production line, farmers are unable to afford them, according to the Moscow Times. They simply do not have the financial means. Consequently, the market has seen a drastic decline. Reports suggest that Rostselmash is now looking to explore new sales markets in Asia.