(BelTA) - Minsk Tractor Works (MTZ trademark) began to supply equipment to Russian consumers as part of the subsidized loan program, BelTA learned from the company.

“Despite the unfavorable situation on the Russian market of agricultural machinery, we intend to use all possible instruments and, in particular, involve financial mechanisms for promotion of MTZ tractors in Russia,” said MTZ. One of such mechanisms has been established by Decree No. 466 on some measures to promote products originating in the Republic of Belarus. The document provides for the subsidizing from the budget of Belarus of some part of the interest rate on the loans obtained in two Russian banks - Sberbank and VTB. Loans are issued to Russian consumers of Belarusian equipment.

"Today, this mechanism is up and running. Russian consumers started formalizing the loans to buy 167 MTZ tractors on the terms proposed by Belarus,” the company reported.

In addition, MTZ is trying to drum up interest in its equipment on the Russian market by taking advantage of decree No. 534 on the promotion of export of goods (works, services) dated 25 August 2006. In accordance with this document, the loans with low interest can be taken in a Belarusian bank and insured in the Belarusian insurance company.

“We can make use of another financial mechanism, which was introduced by the resolution of the Russian government. It provides for the subsidizing of two-thirds of the interest rate on the loans issued for the purchase of agricultural machinery,” MTZ said.

For further promotion of the equipment on the Russian market and building up sales, MTZ will start to certify dealerships this year. The first such certification was done in May. To improve the maintenance network for tractors "Belarus" abroad MTZ has been taking measures to ensure timely delivery of spare parts for post-warranty maintenance. MTZ has already reorganized its marketing center having brought together all spare parts services into one division. This has resulted in an increase in the export of spare parts.

In general, the share of exports to the Russian Federation, which is the main sales market, has declined, said the Minsk Tractor Works. In January-April 2013 MTZ sold 8,023 tractors in Russia, which made up 80.6% as compared to the four months of last year. "The reason is the significant reduction of solvent demand, which was due to the poor harvest of crops in some regions of the neighboring country in 2012, which resulted in the shortage of funds. The interest rate on loans has been increased. In addition, after joining the WTO, Russia has started revising the mechanisms of state support for farmers. The share of local programs has been downsized already. All this has had an impact the tractors market.

According to the company, in January-April 2013 MTZ exported 15,193 tractors and knock-down kits, 82.1% of the volume in the same period last year. Shipments to non-CIS countries were down to 62.5% as against January-April 2012. However, there have been positive trends: the export of tractors to the EU edged up by 8% in January-April 2013.

Minsk Tractor Works was founded in 1946. Now it is affiliated with the Industry Ministry. MTZ produces more than 60 models and modifications of tractors and machines in over 100 versions and configurations for all climatic and operational conditions. MTZ also produces forestry equipment, utilities vehicles, and mining equipment. In 2012 the company manufactured over 60,000 tractors.