The Crisis in russia’s Agricultural Sector Has Reached the minsk Tractor Plant

Every third agricultural enterprise in russia is officially operating at a loss based on first-half results. Over the past year, the agricultural sector’s profits have fallen by 100 billion rubles, while  in southern regions, production profitability has dropped to minus 11%. Farmers are cutting costs and postponing the purchase of new tractors and combine harvesters.

The agricultural machinery market has already slumped. Last year, tractor sales in the rf fell by 37%, combine harvester sales dropped one-and-a-half times. In 2026, the problems have multiplied. The shutdown of the novorossiysk port threatens agricultural exports, while the fuel crisis and rising prices are complicating the harvest.

This situation is also hitting the minsk tractor plant. mtz is preparing to downsize its dealer network in russia, which remains its main sales market. russia accounts for 55% of belarusian tractor sales. Over the years, the plant has established 89 dealerships and five trading houses there. Now, part of this network will have to be shut down.

The financial results reveal the reason. The annual profit of the mtz trading house (domodedovo) fell by 55%. The mtz trading house (tatarstan) lost 95% of its profit. mtz “northwest” reported a loss of 38 million rubles, compared to a profit of 290 million rubles a year earlier. In total, the five trading houses generated only about $3 million in net profit.

In the first half of 2026, mtz’s sales to russia declined by another 2%. Even lukashenko acknowledged that the plant’s profits are no longer sufficient to service its bank loans. mtz is forced to cling to the russian market at a time when russian farmers themselves no longer have the money to buy equipment.

The problem is exacerbated by competition from China. Chinese manufacturers are actively selling equipment in russia and taking market share away from mtz. The belarusian plant is trying to compete by relying on the reputation of its equipment, but the drop in sales shows the outcome of this strategy.