Regions are not on the rise – Newspaper Kommersant No. 142 (7343) of 08/08/2022

Regional programs to replace by February 2025 as part of the overhaul of the housing stock 516 thousand elevators over 25 years old are in danger of failure. The authorities of the constituent entities of the Russian Federation for seven months of this year purchased new equipment as a whole three times less than a year ago. The reason is the rise in price by 30% of finished products due to the high dependence on imported components. Legislators, recognizing the problem of funding shortages, promise to launch installment payments for elevator replacement using factoring.

In January-July 2022, 4.3 thousand auctions were held to replace elevators with a total value of RUB 14 billion. within the framework of programs for the overhaul of apartment buildings, calculated in the association “Russian Elevator Association” (RLO). This is three times less than a year ago, and two times less than in January-July 2020. These purchases are made by the regional authorities as part of their apartment building overhaul programs, which oblige the replacement of elevators that have been in operation for more than 25 years. RLO General Director Pyotr Kharlamov calls the decrease in purchases an “alarming situation”, which leads to a sharp decrease in the production of elevators in the Russian Federation. According to Rosstat, in the first half of 2022, the production of such equipment fell by 40% year-on-year, to 9,000 units (see Kommersant dated August 2). The Ministry of Industry and Trade and the Ministry of Construction did not respond to requests from Kommersant.

The most noticeable decrease in the purchase of elevators was in Moscow: in January-July 2022, only 35 pieces were purchased in the city, while a year earlier – 2.2 thousand, calculated in the RLS. Other leaders in the decline in purchases are the Krasnoyarsk Territory, Volgograd, Rostov and Smolensk Regions (see chart). The press services of the governments of these regions did not respond to requests from Kommersant.

The decrease in the activity of purchases of new elevators is explained, in particular, by rising prices. According to Mr. Kharlamov, over the seven months of this year, prices increased by 30%, while for the whole of last year – by 20%. Regional overhaul funds budgeted for the replacement of elevators in 2022 at the beginning of 2021, he explains. Now, according to RLS, the cost of new elevators ranges from 2 million to 3 million rubles. with the installation and dismantling of old equipment, depending on the region.

Part of the regional and municipal programs for the overhaul of residential buildings has not yet been funded, said Vladimir Koshelev, deputy chairman of the State Duma committee on construction and housing and communal services. According to him, the State Duma is now discussing the issue of changing the terms of installment payment for the replacement of elevators using factoring with compensation for part of the key rate, as well as the possibility of additional financing of the regions in the new conditions.

In addition, auctions for the supply of 722 elevators with a total value of 1.8 billion rubles did not fail this year, while in January-July 2021, auctions for the purchase of 280 elevators for 788 million rubles did not take place, calculated in the RLS. Producers either did not apply for tenders, or refused to conclude contracts, due to the fact that they were not satisfied with the price offered by the regions, says Pyotr Kharlamov. Ruslan Rodikov, general director of the Moscow Electrical Equipment and Elevators plant, says that since the beginning of this year, due to difficulties with importing components, the cost of manufacturing elevators has increased by an average of 30-40%.

For the whole of 2021, 18 thousand elevators were replaced in the regions of the Russian Federation, notes Petr Kharlamov. Vladimir Koshelev recalls that by mid-February 2025, 516 thousand elevators with a service life of more than 25 years will need to be replaced. Until the Russian economy adapts to the changes that have arisen and a new balance is found between the revenue and expenditure sides of the regional budgets, programs such as replacing elevators will be cut, said Vladislav Preobrazhensky, executive director of the Moscow Investors Club. After foreign manufacturers of elevators leave the market, Alexei Li, an expert at NEO Center, concludes that even with the maximum load of Russian enterprises, it is unlikely that it will be possible to close the annual market demand even in 2022.

Daria Andrianova