Jul 01, 2011

Vladimir Putin: “URALVAGONZAVOD products will always be in demand in the country”

While making his speech at Interregional United Russia party conference devoted to the strategy of social and economic development of the Ural region till 2020 Vladimir Putin reminded that during the period of economic crisis the Russian government supported a lot of enterprises in the country, including those in the Ural region.

“Sometimes the government had to tackle the problems of particular enterprises in the immediate, direct way. We can certainly discuss advantages and disadvantages of “manual control”, but it is impossible to sit back and do nothing when a special situation arises. It is inadmissible to let bankruptcies happen and people be thrown away into the street,” Mr. Putinemphasised.

He reminded that in the period of 2008-2009 URALVAGONZAVOD found itself in a difficult situation: “Those present here must know this, and URALVAGONZAVOD is one of the flagships of the Russian machine engineering and construction anddefenceindustry. There was a sharp decline in orders for civil products and a growth in losses. We directed 14.4 billion rubles to replenishment of the authorized capital, provided state guarantees amounting to almost 10 billion rubles and real help in obtaining orders from the RF Ministry of Defence, Rosoboronexport and Russian Railways. A large order for tank cars was placed by Transneft, those tank cars were necessary for product transportation to the Pacific ocean.”

Vladimir Putin emphasized that URALVAGONZAVOD closed 2010 with profits amounting to 6.2 billion rubles. “The average salary grew by 45% in comparison with that in 2009. Production of railway cars increased almost tenfold: from two thousand cars in 2009 to 19.5 thousand cars in 2010, and more than 10.5 thousand cars were produced for the first five months of 2011. This is the maximum output level over the history of the enterprise, including the period of the USSR,” the Prime Minister accentuated.

He also informed the participants of the conference that at present a comprehensiveprogramme amounting to almost 55 billionrubles aimed at modernisationofURALVAGONZAVOD is under development. It is to be adopted at the end of the year. “The enterprise and its employees have seen a definite prospect and certainly, as the old phrase goes, confidence in the future. This is the reason for which all decisions during the crisis period were made,” Head of the Russian Government stated.