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Russia plans to increase tariffs on imported similar machine tools
Abstract Recently, the Russian government has announced plans to raise tariffs on imported machine tools in an effort to boost domestic production and promote import substitution. The Ministry of Industry and Trade was instructed to submit detailed recommendations by October 22 this year. According to the Russian Machine Tool Association, the industry faced a sharp decline during the 2008–2009 financial crisis but began to recover in the second half of 2010. In 2012, under global economic pressures, the government introduced several supportive policies aimed at strengthening the domestic machine tool sector.
The government pledged to invest $1 billion in the machine tool industry between 2011 and 2016, with $750 million allocated for product development and $250 million for technological upgrades to enhance existing production capacity. The initiative aims to launch 50 to 60 new products annually, with a three-year restriction on the import of similar machine tools. Additionally, over the next five years, Russia will invest $300 billion in power infrastructure and nuclear energy projects, which will require significant equipment purchases. Meanwhile, within the next decade, the country plans to allocate $900 billion for military equipment, including machine tools and warships, with $400 billion dedicated to modernizing key manufacturing facilities.
It is also reported that the domestic demand for machine tools in Russia remains strong. By 2015–2017, the defense sector alone is expected to require up to 100 billion rubles (approximately $3.125 billion) worth of machine tools annually. These developments highlight the growing strategic importance of the domestic machine tool industry in Russia’s long-term economic and industrial planning.