Czech Companies Now Export Less to the Urals

17.06.2009 — News

THE SVERDLOVSK OBLAST.

During the financial crisis the Ural enterprises try to buy only the most necessary products from the Czech Republic. Large equipment used to dominate the Czech exports to the Ural, but now it's mostly spare parts and consumables.

Irži Boleček, Director of the Czech Trade agency representative office in Ekaterinburg told RusBusinessNews that the major projects in transport, energy, metal working and mining where Czech products are used have been put on hold.

Meanwhile, OAO NPK Uralvagonzavod in Nizhny Tagil is negotiating with the Czech holding ALTA and Czech Export Bank about the debt settlement. During the past six years the company received industrial machinery from ALTA worth about 300 million euro. The credit was provided be the Czech Export Bank. In the beginning of 2009 Uralvagonzavod could no longer pay because of the deteriorating economic situation.

The head of ALTA Ekaterinburg Sergey Dobiža told RusBusinessNews that the negotiations started in May have been fruitless so far. Uralvagonzavod's total debt due to the Russian and foreign banks exceeds 1 billion dollars.