As the press service of Uralvagonzavod told BBC, employees of wagon assembling and metallurgic divisions, as well as related services, were sent on forced vacation.
According to media reports, about 3,000 people are sent on vacation leave.
“Due to the decline in traditional business and manufacturing activity in June, as well as due to the fact that the planned volume of commercial products for 2016 does not demand full employment, for the period from June 1 to June 30 2016 the employees […] are on forced hold,” said in a statement.
During the leave, the workers will be paid 2/3 of their salary.
The company says that Uralvagonzavod provides social support to employees and their families. Among other things, the social package includes subsidies for meals in canteens (30 rubles daily, approx. $0.5 USD – RRT), and financial assistance.
In September last year the government approved state guarantees to Uralvagonzavod in the volume of 17 billion rubles ($249 million).
The Uralvagonzavod corporation includes 40 companies, and is headquartered in Nizhny Tagil. It is 100% state-owned company. In 2014, the corporation has come under Western sanctions, and its debt financing is forbidden.