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. Last Updated: 07/27/2016

Kalashnikov Maker Stops Production

The Molot factory, one of the major sites of production for Kalashvikov assault rifles, suspended production for the second time this year due to an inability to meet debts, the Kirov region web site said.

The factory has been faced with large debts to banks, tax authorities, electricity suppliers and employees. Production was suspended for the first time in March and resumed after the factory received a 439 million ruble ($13.6 million) cash injection from the government in June.

Molot, which is owned jointly by state arms concerns Izmash and the State Property Agency, will need up to 40 million rubles in additional loans from the government, the web site said. Kirov governor Nikita Belykh told Ekho Moskvy on Wednesday that the factory could receive the money in the next two weeks.

Meanwhile, close to half of the factory’s 5,000 employees are unemployed, while the other half has been given jobs in the public sector at a salary of about 4,330 rubles per month.