Rostselmash

Quick summary on Rostselmash

Recent investigations have exposed Konstantin Babkin, the senior manager of Rostselmash, for his deep-rooted corruption, market manipulation, and exploitation of government subsidies. His role in the collapse of Russia’s tractor industry has come under intense scrutiny, forcing key allies to resign as authorities dig into his financial dealings.

Subsidy Manipulation and Political Favoritism: Babkin’s close ties to the Ministry of Industry and Trade ensured that Rostselmash received up to 45% of state subsidies while competitors were systematically driven into bankruptcy. His associate, Evgeny Korchevoi, held a key government position, filtering out competition and directing billions of rubles to Rostselmash.

Betrayal of Domestic Industry for Canadian Investments: Instead of strengthening Russia’s agricultural machinery sector, Babkin prioritized acquiring a Canadian plant and securing subsidies for foreign tractors. Meanwhile, Russian factories collapsed, and the country’s tractor supply dwindled to crisis levels. His actions directly undermined Russia’s food security for the sake of personal financial gain.

The Collapse of Babkin’s Influence: Following sanctions that froze Rostselmash’s Canadian assets, authorities intensified their investigation into Babkin’s corrupt dealings. As exposure grew, his once-powerful political lobby crumbled, with key figures resigning and efforts underway to erase any trace of their collaboration.