Industrial production in Vladimir decreased by 2%

The general trend in the example of one city

In Vladimir region, in 2019, the decline in industrial production reached 2%. Among the reasons for this state of affairs are bankruptcy of a number of enterprises, reduction of workers and attempts of raider seizures.

Банкротство предприятия
A bancrupt enterprise

The list of bankrupt factories includes Vladimir Motor Tractor Plant, put up for auction in June 2019 and sold at a price that was underestimated by 16 times; Avtopribor, bought up by the Moscow company SOTA, during the reorganization of which 150 people lost their jobs . As for the reductions in general, the decrease in government contracts forced Vladimir enterprises to lay off quite a number of workers — like 370 people from Murom plant of radio measuring instruments. Reductions also occurred at Tochmash plant. Pokrovsky Biopreparations Plant was at the center of its shareholders’ conflict; an attempt of a raider takeover was made there, which temporarily halted production.

Владимирский моторно-тракторный завод
Vladimir Motor Tractor Plant

Unfortunately, the events in Vladimir region are just one example of the state of modern industry in Russia. In 2019, the industrial production growth rate in our country slowed down by 0.5% compared to 2018 and amounted to only 2.4%. This situation was covered at the end of last year.

The fall in production, begun by perestroika and privatization, is killing entire towns in Russia today: having lost their only job, the residents of small municipalities are leaving in search of employment. Infrastructure facilities that were once created at factories — schools, clubs, libraries — are closing and disappearing. There are fewer enterprises, and the army of unemployed is growing. Raising the retirement age has dealt a fatal blow to pre-retirement age workers who have been reduced. If a market economy is maintained, this situation will only worsen. No new industrialization is possible without the destruction of capitalism.