Russian road workers complained to the government about a decrease in profits

They also asked for industry support. According to the Kommersant publication, specialized companies sent a letter to the country’s Deputy Prime Minister Marat Khusnullin, signed by the General Director of the National Association of Infrastructure Companies (NAIC) Maria Yarmalchuk. In their message, market players said that reductions in government procurement in the construction sector, as well as an increase in the key rate and sanctions, had a negative impact on the position of many companies.

Road workers reported that by the middle of this year, the revenue of specialized companies decreased by 15 percent. At the same time, net profit decreased by 12.2 percent. At the same time, the company experiences increased costs. Over the past nine months, the cost of construction materials and equipment has increased by 27 percent, and labor costs have increased by 36 percent. The combination of these factors has led to the fact that the profitability of companies specializing in road construction today is less than five percent.

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Market players believe that without government support, many firms may go bankrupt without implementing road projects. Representatives of NAIC asked the government to recalculate the cost of government contracts when transferring funding to a later date, and also to cancel the recycling tax on foreign road-building equipment if it does not have domestic analogues.

Last November, road workers revealed the secret of laying asphalt in rainy and snowy weather. According to experts, innovative technologies and high quality coatings make it possible to lay the mixture even under unfavorable conditions.

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