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An article about Vostok financial situation. (http://mywatch.ru/forum/index.php?showtopic=6750). Notice: I cannot verify this information, it is attributed to a Tatarstan newspaper and republished on a reputable Russian watch forum.

The main points, as far as I understood, are:
- Significant proportion of Vostok production was commissioned by car producers. When the crisis in 2008 began, these commissions all but stopped.
- The Ministry of Defense launched a bid for watches for the army - the new ZAKAZ. Vostok won the lion's share of this bid and invested lots of money for designing new watches and buying new machines.
- The Ministry of Defense did not transfer the money in time, and Vostok failed to pay its taxes in due course. For a relatively minor debts of 5 800 000 rubles (2-300 000 USD), a procedure of bancrupcy was launched.
- The Ministry of Defense sent the first installment on Sept 15, and Vostok was able to pay its debts, but the bankruptcy procedure was launched anyway. Tzivilin, Vostok director, resigned.
- The author suspects that somebody - with the help of the Russian Ministry of Defense, which did not transfer the money before Tzivilin's resignation, and the tax authorities which launched bankruptcy procedure for a relatively minor debt, and did not stop it when the debt was paid - intends to acquire the billions' USD worth of Vostok assets for peanuts.

Again, Russian is not my mother language and I cannot verify this info. Hope some native speaker will help.
 

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An article about Vostok financial situation. (http://mywatch.ru/forum/index.php?showtopic=6750). Notice: I cannot verify this information, it is attributed to a Tatarstan newspaper and republished on a reputable Russian watch forum.

The main points, as far as I understood, are:
- Significant proportion of Vostok production was commissioned by car producers. When the crisis in 2008 began, these commissions all but stopped.
- The Ministry of Defense launched a bid for watches for the army - the new ZAKAZ. Vostok won the lion's share of this bid and invested lots of money for designing new watches and buying new machines.
- The Ministry of Defense did not transfer the money in time, and Vostok failed to pay its taxes in due course. For a relatively minor debts of 5 800 000 rubles (2-300 000 USD), a procedure of bancrupcy was launched.
- The Ministry of Defense sent the first installment on Sept 15, and Vostok was able to pay its debts, but the bankruptcy procedure was launched anyway. Tzivilin, Vostok director, resigned.
- The author suspects that somebody - with the help of the Russian Ministry of Defense, which did not transfer the money before Tzivilin's resignation, and the tax authorities which launched bankruptcy procedure for a relatively minor debt, and did not stop it when the debt was paid - intends to acquire the billions' USD worth of Vostok assets for peanuts.

Again, Russian is not my mother language and I cannot verify this info. Hope some native speaker will help.
In short, another sad story of sharks in a messy sea. Thank you for your translation - i think it's clear enough.

Too bad we will not see new 3AKA3, unless somebody will continue part of the Vostok activity.
 

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An article about Vostok financial situation. (http://mywatch.ru/forum/index.php?showtopic=6750). Notice: I cannot verify this information, it is attributed to a Tatarstan newspaper and republished on a reputable Russian watch forum.

The main points, as far as I understood, are:
- Significant proportion of Vostok production was commissioned by car producers. When the crisis in 2008 began, these commissions all but stopped.
- The Ministry of Defense launched a bid for watches for the army - the new ZAKAZ. Vostok won the lion's share of this bid and invested lots of money for designing new watches and buying new machines.
- The Ministry of Defense did not transfer the money in time, and Vostok failed to pay its taxes in due course. For a relatively minor debts of 5 800 000 rubles (2-300 000 USD), a procedure of bancrupcy was launched.
- The Ministry of Defense sent the first installment on Sept 15, and Vostok was able to pay its debts, but the bankruptcy procedure was launched anyway. Tzivilin, Vostok director, resigned.
- The author suspects that somebody - with the help of the Russian Ministry of Defense, which did not transfer the money before Tzivilin's resignation, and the tax authorities which launched bankruptcy procedure for a relatively minor debt, and did not stop it when the debt was paid - intends to acquire the billions' USD worth of Vostok assets for peanuts.

Again, Russian is not my mother language and I cannot verify this info. Hope some native speaker will help.
Basically you're telling us that the Ministry of Defense ordered some watches, but it didn't pay, therfore Vostok could not pay the taxes to the same government forcing Tzivilin to resign?

Call me conspiracy theorist, but it sounds to me like a political intrigue to sack the CEO and take over that industry.
 

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Basically you're telling us that the Ministry of Defense ordered some watches, but it didn't pay, therfore Vostok could not pay the taxes to the same government forcing Tzivilin to resign?

Call me conspiracy theorist, but it sounds to me like a political intrigue to sack the CEO and take over that industry.
Yup, I think I read in earlier post where this is 1 of the method to take over assets ? <|
 

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From here it seems that the Vostok company asked for their own bankruptcy alone. It could be either people in the management with "special mission" to kill the factory, or it is a move to save themselves from creditors until they go back in business.
 

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If it's not too late for one more question, I'd like to know if Boctok will reproduce this 24h version. :roll:

Vostok 2431Б (RU)
Mechanical lever movement
Automatic 24-hours
Diameter: 24 mm
Movement height: 6,3 mm
31 jewels
Functions: hours, minutes, seconds, date calendar
Shock protection
Frequency: 19800 vph
Daily rate from -20 to + 60 s/day
Power reserve minimum: 31 h
 

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This is all so sad. Vostok makes watches that are totally unique in a world of Swiss lookalikes and cheap quartz. Vostoks have unique movements, unique styles, a great amount of quality, and much history. Of all the post-2008 losses in the watch industry, Vostok will be the most hardfelt to me.
 

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Well it's not really "done" for them is it? Couldn't they still come out of this or is bankruptcy really the end in the Russian system?

Laco just went through bankruptcy and even Raketa seems to be coming back from the brink.
 

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Correct. I wouldn't start driving nails into Vostok's coffin just yet. Raketa is coming back, Poljot lives on through its offspring, and our vendor friends have continued to receive new shipments from Chistopol. That Bulgarian article didn't bring anything new to the table, either.
 

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However nothing will be the same anymore. The days of tough and cheap mechanic Boctok watch have gone. :-(
I only hope whoever takes the responsibility to resurrect this historical factory, to keep some of those good old values.
Personally I believe quartz is not the solution but just an option. Besides Boctok proved it so far against japanese competition.
 

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Maybe it is just a time of change in Tatarstan now. The former president, Mr. Shajmiev, dominated the local political life since 1983 and resigned on January 25 this year. Other long-term regional leaders in the Russian Federation seem to be on the same track. The new president, Mr. Miminov, who took office in March, was member of Mr. Shajmiev's administration and is supported by Mr. Shajmiev, but still such major political changes sometimes go together with a process of renegotiation of positions, redistribution, readjustment - sorry, my English is really inadequate - in economy. Hopefully, the new president Mr. Miminov has the reputation of a technocrat and maybe will support Vostok.
 

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Discussion Starter · #56 ·
Well, though this translation still has not been finally approved by Vitaliy, I think I post it. Otherwise we will be waiting another couple of months. After all, this is a very close translation and I only needed a formal OK and confirmation of the numbers given in the first three answers (which sound astonishing to me). If any changes indeed are necessary, I will make a correction.

Here we go...

First of all I would like to thank all the collectors and simply those people who like Vostok watches worldwide for their love towards russian watches, trust and partnership. We very much appreciate the attention of the international community.

How many employees work for Vostok? The production involves something like 300 people, management - 7.

How many watches and movements Vostok is producing a year? About 220-240 thousands watches and 33-38 thousands mechanisms.

What percentage of production is exported? About 18-21%.

What other items besides watches does Vostok manufacture? Ship's clocks, wall and floor clocks, water meters, gas flowmeters, electricity meters, a combination of devices and various accessories for the automotive industry, dies for production, etc.

What is the relation between Vostok Watch Makers Inc., Vostok International LTD, ОАО Чистопольский часовой завод "Восток" и „Русские часы"?
All of these entities are under one central management. The purpose of their creation - the division of areas of work, more rapid response to market demands.

Are any of the Soviet-era staff still working at Vostok? Yes.

Are watch cases manufactured at the Vostok factory? For the vast majority of models, yes.

Does Vostok consider subcontracting some activities of complete chain (like they now produce even the ruby-jewels in their Briolet sub-brand)? Yes.

Is there ongoing development of new mechanical movement (quick date-set, chrono, etc)? Yes.

Would the quality of the watch acquired in Russia be different from that of the watch acquired from the official dealer listed on your website? In principle not, but the watches for export are made separately with double testing procedure which is reflected in their price.

What is more advantageous for Vostok as a company, the drain abroad of the watches manufactured for the domestic market or direct deliveries abroad? Direct deliveries.

Are there new models in project? Yes, we work on that.

Will the Vostok factory in Chistopol continue to produce watches and movements? Yes it did, does and will do.

Are we still going to be able to buy classic Vostok designs such as the 'Scuba' Amphibian? Unambiguously yes.

Will Vostok ever consider making a re-issue (like they did for the 1967) of the Amphibian? No, at the moment not.

Will BOCTOK remain a Russian company making Russian watches with Russian movements? Unambiguously yes.

Will the pricing of current and future Komandirskie and Amphibia models be in line with current pricing expectations? In 2010 the price will remain the same.

If yes, will the quality be higher? We're continuously working to improve the quality of the watches and mechanisms.

There was an article in Russian, that Vostok is going to be supplier to Russian army again. The contract was expected to end of 2009:
- Is there any progress with Russian army contract for military watches? Yes, there is a progress. The only question is the funding from the side of military.

Is it true that Vostok is in difficult financial situation? Yes, and the reason is the non-payment by russian consumers.

Does Vostok produce the watches „Troika"? No.

How is Vostok coping, in terms of transitioning from an enterprise which grew out of planned economy, to an enterprise which has to exist - and flourish - in the market economy environment? Only by expanding the product assortment and maintaining the quality of the earlier models.

If Vostok needs help, how the collectors and fans of your watches worldwide would be able to help? We would appreciate to receive the recommendations and suggestions of how to improve the design of the watches.

There is an information that Vostok started work on a *true* GMT movement for Vostok-Europe, is it true? Yes.
If yes, what phase is the developement of this product in? At the stage of completion of the design development.

What about the global marketing & distribution strategy of Vostok? From a US perspective, if Vostok were able to sign with a distributor who could afford well-placed advertisements and product placements, they could move many more watches. We completely agree with this statement. Any suggestions as for the distributor?

How is the new line of Amfibia watches selling compared to the classic designs? We have reissued the watches of this collection twice. The second re-issue is almost sold out.

Have they taken steps to stop the blue-faced watches fading? Yes, we are working on the selection of paint with high light-resistance.

The questions of WUS members have been answered by Mr. Vitaly Podyachev, Director of VOSTOK INTERNATIONAL LTD through intermediary of www.m-watches.com, the official distributor of Vostok watches in Germany.
 

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Very interesting, and thanks so much for doing this!

I find this very interesting also, it is the question I posted and the response:

"If Vostok needs help, how the collectors and fans of your watches worldwide would be able to help? We would appreciate to receive the recommendations and suggestions of how to improve the design of the watches."

I guess it isn't the response I thought we would get! I assumed it would be something like "buy more Vostok watches".

But now I am wondering, how would/could we actually go about providing "recommendations and suggestions of how to improve the design of the watches"? :think:
 
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