Russian defence industry meltdown as liquidity crisis erupts and lawsuits mount | World | News
Russian defense companies face an increasing number of law cases on free invoices because they hold a liquidity crisis sector. The Kremlin placed its Russian economy on a war base and increased the production of military equipment.
The Putin government is investing a large $ 145 billion (£ 107 billion) for defense expenditures for this financial year, representing 6.3% of Russia’s GDP. Nevertheless, despite the major cash inflows to the sector, many companies cannot pay their bills and ask them to take suppliers to court. In the last case, Magnitogorsk opened his third case against Uralvagonzavod (UVZ) within two months.
The state’s UVZ, the T-90M tank produced and MMK 105 million rubles (995 thousand £) is reported to be owed. The case was opened at the Chelyabinsk Court of Arbitration and contributed to a series of increasing legal action caused by Russia’s worsening war economy.
Uvz is located in Nizhny Tagil and is at the center of Kremlin’s armored vehicle production. In total, the company faced more than 160 million rubles (£ 1.5 million) in the court claims of the suppliers, and previous cases were opened in April and June.
It has been fed with financial problems for several years and shows that its debts have already exceeded 880 million rubles (£ 8.3 million) by 2020.
Production fell in the facility, western sanctions have stopped accessing the critical components required for the production of tanks.
According to the International Institute of Strategic Studies, the company failed to meet the target of 1,000 T-90m tank last year.
Liquidity problems extend beyond UVZ and influenced the other great Russian military-industry business. TU-160 and TU-95MS, the manufacturer of bombardment aircraft, the aircraft manufacturer Tupolev is faced with a case for unpaid bills.
In April, Kuznetsov, a subsidiary of United Engine Corporation (UEC), filed a lawsuit with the Moscow Arbitration Court to save 425 million rubles from the manufacturer.
In addition, Khrunichev State Research and Production Area Center, which produces Russia’s ICBMs, faces allegations exceeding 211 million rubles (£ 2 million).
