Support The Moscow Times!

Putin Didn't Save TagAZ

Three months after a federal intervention and loan-restructuring agreement for Taganrog auto factory TagAZ, the company has filed for bankruptcy, Kommersant reported Tuesday.

During the economic crisis in 2008, TagAZ's debt ballooned to 20 billion rubles ($675 million) and its production levels dropped sharply. Its main creditors are VTB, Sberbank and Gazprombank.

After the personal intervention of Prime Minister Vladimir Putin in December, the company was able to conclude a deal with VTB and cut its loan percentages in half. TagAZ was to begin paying off the principal in April, but the company lacks the money to even guarantee its operations continue without interruption.


Read more

Independent journalism isn’t dead. You can help keep it alive.

As the only remaining independent, English-language news source reporting from Russia, The Moscow Times plays a critical role in connecting Russia to the world.

Editorial decisions are made entirely by journalists in our newsroom, who adhere to the highest ethical standards. We fearlessly cover issues that are often considered off-limits or taboo in Russia, from domestic violence and LGBT issues to the climate crisis and a secretive nuclear blast that exposed unknowing doctors to radiation.

As we approach the holiday season, please consider making a one-time donation — or better still a recurring donation — to The Moscow Times to help us continue producing vital, high-quality journalism about the world’s largest country.