A Focus on Domestic Elevators

Russian elevator sector moving toward almost complete isolation. 

The Russian elevator sector is moving toward almost complete isolation, due to the recently announced state plans to allow installation of only domestic and Belarusian elevators in apartment buildings throughout the country. 

A draft state resolution has been prepared and approved by the Russian Ministry of Construction — a state agency responsible for the development of construction and elevator sectors in the Russian government. In May 2022, the government imposed a ban on the participation of foreign elevator manufacturers in some tenders for the supply of elevators for state needs, while the new resolution will probably close all the existing loopholes in this field.  

In accordance with the document, foreign elevator manufacturers will be prohibited from participating in tenders for the purchase of elevators for the needs of most apartment buildings in Russia. It is expected that domestic suppliers that receive such permissions should be presented in a special register of elevator manufacturers that will consist of selected companies from Russia and Belarus. A register of this type already exists and includes at least seven manufacturers: Euroliftmash, Shcherbinsky, the Serpukhov elevator-building plants, Moslift, Karacharovsky Mechanical Plant and some others. 

One of the reasons for such a decision is to support domestic elevator manufacturers; however, some analysts see political aspects in the decision. “The key task is to ensure the workload of Russian factories, specializing in manufacturing of elevator equipment,” said an official spokesman of the Russian Ministry of Industry and Trade. 

According to the Ministry in 2024, Russian elevator enterprises produced only 25,900 elevators with a design capacity to produce more than 65,000 elevators per year (with a speed of up to 2.5 m/s). The Ministry of Construction expects that approximately 24,000 elevators will be replaced annually as part of major repairs in apartment buildings, and another 30,000-35,000 elevators will be installed in new buildings. 

According to earlier data by the Russian National Elevator Union (NLU), in terms of market structure, Russian manufacturers currently occupy about 70% of the domestic elevator market with another 15% accounting for elevators from Belarus, and the remaining 15% for companies from China, Türkiye and other foreign countries. Elevators parts, including those of Western origin, are still imported to Russia via parallel imports, being primarily designed for installation in elite and premium housing. 

In the meantime, members of the Russian Parliament and senior officials consider the new initiative important. Its implementation, according to them, will contribute to strengthening Russian state security in its construction and elevator sectors. 

As Sergei Kolunov, deputy chairman of the State Duma Committee on Construction and Housing and Utilities, said in an interview with Stroygazeta (a well-known Russian paper in the field of construction and elevators), prior to 2022, the presence of foreign elevator manufacturers in Russian elevator and construction sectors was high, which created serious risks for Russian state security in this field. In addition to risks with Western elevators, Russian officials also see risks with the supplies of elevators from so-called “friendly” countries to Russia, such as Türkiye and China. For the latter, special additional requirements will be designed that will provide them an opportunity to operate in the Russian market. 

Kolunov said: 

“We are currently living in conditions where foreign elevator manufacturers often have the ability to switch off many types of equipment remotely from abroad with literally one click. We would not like to allow such risks with products from any country, no matter how friendly our relations with them are now. Therefore, foreign manufacturers entering our market should at least organize warehouses with spare parts here and share their software and codes from it with us. Otherwise, we may face a situation where not only old but also many new imported elevators installed in apartment buildings, offices and shopping centers will be simply blocked.”   

In the meantime, the new state initiative has already been criticized by some independent analysts, as participation of a selected number of domestic elevator manufacturers in state tenders will create additional risks of corruption and lack of real market competition in this field. Moreover, in accordance with the resolution, only official dealers or 100% subsidiaries of both Russian and Belarus manufacturing plants will be allowed to service the installed elevators.

According to the Elevator Union, by 2030 110,000 elevators are planned to be replaced in Russia. Implementation of these plans, according to some analysts, however, may face serious technical difficulties due to a severe shortage of installation companies in Russia these days.