UVZ to slash international cooperative programs amid sanctions
Sienko's announcement was made during a speech at the Highway 2014 Ural Transport meeting in Yekaterinburg, ITAR-TASS reports.
"We have a program of investment in civilian as well as in military production," Sienko said, according to ITAR-TASS. "We try to stick to those plans. Of course, it became difficult to finance, as our major banks and lenders were on the sanctions list."
The executive said further that Uralvagonzavod's overall production has decreased dramatically amid the sanctions.
"It fluctuates around zero, because the products, in particular the railway engineering, not such in demand," Sienko said, ITAR-TASS reports.
Uralvagonzavod's net income in the first half of 2014 reached $4.94 million--a decrease of 9.7 percent over the same period in the previous year. Meanwhile, revenues for the period increased three percent over the previous year to $1 billion. Despite the upward revenue trend, the company posted a 20 percent drop in gross profits during the first half of the year.
With Uralvagonzavod's access to European and American markets suspended, Sienko plans focus the company's efforts on Russian and Ukrainian defense contracts. During the Highway 2014 Ural Transport meeting, Sienko met with Sverdlovsk Governor Yevgeny Kuyvashev to discuss Uralvagonzavod's involvement in upcoming domestic production agreements, according to ITAR-TASS.
"The ability of the Urals defense enterprises to produce dual-use products enables them to maintain the stability and viability in the face of economic sanctions against Russia," Kuyvashev said at the meeting, ITAR-TASS reports. "Last year, the share of civilian production remained at 42 percent. In addition, to ensure the ongoing development of production to produce modern high-tech products, so as not to depend on supplies from other countries, will help enterprises actively participate in the program of import substitution and development of cooperative ties with other regions of Russia, including Crimea. This will allow us to ensure that our plants are insured against any conjecture of the global and political instability."
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