Russian defence industry meltdown as liquidity crisis erupts and lawsuits mount

 

https://www.express.co.uk/news/world/2081289/russia-defence-industry-liquidity-crisis/amp

 

 

Russian defence companies are facing a growing number of law suits over unpaid bills, as a liquidity crisis grips the sector. The Kremlin has placed Russia's economy on a war footing and ramped up production of military equipment.

Putin's government is investing a massive US$145 billion (£107bn) in defence spending for this fiscal year, which represents 6.3% of Russia's GDP. Yet despite the huge inflows of cash into the sector, many companies appear unable to pay their bills, prompting suppliers to take them to court. In the most recent case, Magnitogorsk Iron and Steel Works (MMK) filed its third lawsuit in two months against Uralvagonzavod (UVZ).

 

 

How did you go bankrupt? Two ways: Gradually, then suddenly.

 

 

Always loved that quote.

The state-owned UVZ produces the T-90M tank and reportedly owes MMK 105 million roubles (£995k). The case was filed in the Chelyabinsk Arbitration Court and adds to a growing series of legal actions stemming from Russia’s deteriorating war economy.

UVZ is based in Nizhny Tagil and is central to the Kremlin’s armoured vehicle production. In total, the company now faces over 160 million roubles (£1.5m) in court claims from suppliers, with earlier suits filed in April and June.

It has been beset by financial problems over a number of years, with reports suggesting its debts already exceeded 880 million roubles (£8.3m) as far back as 2020.

I hope this is true news but the Express is not reputable newspaper so you can never trust the news in it.

https://www.express.co.uk/news/world/2087114/russia-economy-magnitogorsk-Iron-steel-works-profits/amp
 

profits collapse