No point propping up an industry if it isn’t competitive. I understand times are tough in Russia due to sanctions and what not, but there is a massive growth ongoing in Russia judging by all the news and recent increases in manufacturing/production. If the enterprise wants to survive, they will need to adjust to the new demands. I understand it is hard to do so under debt, but they will have to (either by loans or whatever). If not, I don’t see how they should intervene at all. Someone else will take their place.

Clearly, conditions are good enough if production has increased in the region. I am a firm believer you cannot have special conditions for all regions. Instead, it should just be what it is. The government is clearly getting rid off a lot of beurocracy that is causing strain on the system, but lets face it, businesses in Russia are getting some interesting treatment: Tax exemptions for x amount of years is just one of the examples. As the case for companies like Avtovaz in the past or currently Michel, it seems to be a clear sign of poor management. Avtovaz turned itself around after new management. Maybe this facility will have to do the same? Maybe they will have to produce products that are in demand? If it is the facility I think it is, then it builds tractors. Well, there are already a few facilities whom already produce that as well. Too many of them will cause saturation in the market. Too few of them cause a monopoly. So this is the balance of the market. In this case, the company should start working on other products maybe for agriculture industry like automation installation and such.

If I may ask, which special conditions do you think should be implemented? It is easier said than done. If you say tax exemptions? well, I say only if they invest in themselves, not based upon handouts. What other special conditions should be available? Free utilities? Free resources/raw materials? I hear this a lot even here in Canada.