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April 10 2002, 16:03 UkrInform

UkrAhroMashServis inactive

Ukrinform reported that Kharkiv Governor Yevhen Kushnariov complained that UkrAhroMashServis although managing the controlling stock of majority of machine building plants in Kharkiv Oblast made little to improve the said branch operation.

With total grow of machine building sector, tractor and agrimachinery plants had negative balances. Of 10 plants - 6 dropped their production last year.

Only 1,591 tractors were sold in Ukraine of 2,282 produced at KhTZ (Kharkiv Tractor Plant). This is paradoxical because Ukraine's tractor needs alone are 50,000 units of which 5,000 are wanted in Kharkiv Oblast.

Market is an interesting thing and it does not exist today, said Kushnariov, although demand for tractors is available and production capacity is sufficient. Leasing, price decrease which should be subsidized through State Budget almost US $169 mn are not in place yet.

Many, including Kharkiv Oblast placed their stakes on UkrAhroMashServis to lobby the interests of the branch but the latter proved very inactive.

Kushnariov hopes that the President and the Cabinet view this sector as strategic and do something in the near future to correct the situation. Russia, in his view, could serve as a good example where legislation is in favor of the sector in question.

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