russian Machine Tool Industry: Deep Dependence on Imports and Failure of Import Substitution

russia’s machine tool industry remains critically dependent on imports, first of all of technologically sophisticated computerized machines. Despite the kremlin’s statements about increasing local machine tool production, russian companies use 98.3 % of machine tools of foreign origin from Turkey, China, India, and Malaysia.

At the end of 2022, China became the largest supplier of machine tools to the rf, providing 62 % of the total number of foreign machine tools (until February 2022, this figure was 20 %) and more than 50 % of spare parts.

In 2024, the share of Chinese machine tools in the russian market increased to 71 %. Besides, the supply of machine tools from India increased significantly (27.5 times in 2024 compared to 2020).

At the same time, imports of machine tools from Germany (which accounted for 15-20 % of the russian market before the war), as well as Japan and South Korea, have declined as a result of Western sanctions.

The situation on the russian market of high-tech machine tools demonstrates the systemic problems of the industry related to the lack of Western technologies. According to the Foreign Intelligence Service of Ukraine, the government’s “import substitution” programs have failed to offset russia’s dependence on foreign technologies.