The metallurgical industry of the Russian Federation faced the deepest decline since the beginning of the full-scale war
In July, the production of metallurgical products in Russia decreased by 10.2% compared to the same month last year, which was the worst result in at least the last three and a half years. informs about this Center for countering disinformation (CPD), referring to Rosstat data.
A significant drop was recorded at the industry’s leading enterprises: the Magnitogorsk Metallurgical Combine reduced steel output by 18%, “Mechel” reduced sales by 11%, and Trubna metallurgical company – by 22%. Businesses also report losses in the billions.
The main factors of the decline, according to the Central Bureau of Statistics, were the sanctions pressure and the loss of foreign markets. In addition, the situation was worsened by a sharp drop in domestic demand from the construction and mechanical engineering sectors, as well as the tight monetary policy of the Central Bank of the Russian Federation, which limits investments.
“The war and sanctions are gradually destroying the industrial framework of Russia. The collapse of metallurgical production is not only a problem for the oligarchs who own the plants. These are the risks of massive layoffs, plant shutdowns and further economic decline in regions that are critically dependent on metallurgy, added the CPD.
At the same time, the net profit of the largest Russian oil producing company “Rosneft” in the first half of the year decreased by 68% and amounted to 245 billion rubles (approximately $3 billion) due to the drop in world oil prices. Moscow expressed concern over the pace of increases in production quotas under the OPEC+ agreement, but ultimately supported the decision of the cartel, which this year abandoned a long-term policy of production cuts and moved to restore market share amid calls from US President Donald Trump to increase supplies.
