The flagship of the Russian agricultural industry is reducing production: 2025 is the worst year in a decade

One of the key players in the Russian agricultural industry, Rostsilmash, has reduced production capacity and introduced a three-day work week starting in August. The reason is a sharp drop in sales and financial instability.

This was reported by the Center for Countering Disinformation at the National Security and Defense Council.

According to the Central Production and Investment Center, the company is winding down investment projects and recognizes 2025 as the worst year in the last ten years. Experts consider the situation around Rostsilmash a marker of a deeper economic crisis in Russian industry.

The reasons for the decline are obvious: war, international sanctions, disruption of logistics chains, and a decline in domestic demand. All this has hit even flagships, which are forced to either halt production or switch to a reduced schedule.

Rostsilmash is not the only example. Other large enterprises have already taken similar measures, including KamAZ, AvtoVAZ, Kirov Tractor Plant, and Chelyabinsk Electrometallurgical Plant.

The reduction in working hours allows companies to legally cut wages by 20-40%. While the Russian authorities are trying to present this as a “flexible employment format” and “compliance with global trends”, analysts emphasize that this is not about modernization, but about a forced response to the economic exhaustion caused by a full-scale war.

Recall that Russia’s largest automaker AvtoVAZ stopped production from July 29 to August 11 inclusive . The official reason is “corporate vacation”, but in reality the decision is related to a critical situation in the market: the company’s warehouses are overflowing with unsold cars.

As reported, Russia’s largest automaker AvtoVAZ switched its factories to a four-day work week starting September 29. The new schedule will be in effect for at least six months, until March 2026. The reason was a sharp drop in sales and problems in the car market.

By the way, the Russian government has announced large-scale spending cuts for 18 state programs in 2026 — savings will exceed 207 billion rubles. At the same time,some industries will suffer serious losses, while funding for propaganda and government agencies, on the contrary, will increase.

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