Western penalties struck the raw materials of the Russian Federation exporting, and domestic consumption was insufficient, as the Russian economy gradually stopped.
The largest steel company in Russia reports a rapid income collapse. The factors are called the growth of credit rates, the reduction of domestic demand and penalties that limit access to foreign markets. The Moscow Times reported this Friday, July 25th.
Magnitogorsk Metallurgical Plant – One of the largest in Europe and second in terms of labor in the Russian Federation – according to the results of the first half of the year, reduced revenue 9 times, up to 5.6 billion rubles. The company’s income owned by billions of Viktor Rashnikov (the fate of $ 9.6 billion, according to Forbes) was reduced by one third, while EBITDA’s indicators were more than half.
MMK’s cash flow became negative: in the second quarter, the costs exceeded the receipt of 4.9 billion rubles.
Severstal Billionaire Alexei Mordashov ($ 28.5 billion) Also completed half -flow with a negative cash flow of 29.1 billion rubles. The team’s income, united in eight factories, reduced by 16% in the annual terms, while the net profit was split, by 15.5 billion rubles.
In the third quarter, next, the company did not pay dividends and reports a sharp drop of demand for steel in the Russian Federation -by 15% this year after reducing 6% in the past.
“Metallurgy is so bad,” economist Nikolai Kulbak described the situation. According to him, the penalties hit the raw materials of the Russian Federation exporting, and inadequate domestic consumption, as the Russian economy gradually stopped.
GDP growth rates have slowed down, as construction volumes have dropped by about a third – to a minimum in the last three years.
The forecast of consumption for this year for the Russians is highly pessimistic, as the demand for steel in the Russian Federation can fall from 43-45 million tons to 39 million tons.
The Russian government is considered to be reducing taxes for metallurgists, Anton Alakhanov said in June. This is, in particular, about adjusting the excise tax formula for liquid iron.
PSB analysts believe that a hypothetical market recovery is possible not earlier than the end of 2025 – early 2026.
Remember that a review of the foreign economic state of the Russian Federation, published by Ukraine’s Foreign Intelligence Service, suggests that Russia could lose a financial pillow in 2026 due to rapid reduction of oil revenues.
Penalties are “reduced” by a — quarter of exports from the Russian Federation
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.