The fall in world steel prices and the European embargo resulted in a number of Russian companies operating with negative margins in June-July.
Iron ore exports from Russia to China in the first six months of 2022 fell by 40 percent in monetary terms and 20 percent in physical terms. According to Vedomosti, citing data from China’s Main Customs Administration, 3.4 million tons of iron ore worth $478 million were exported from Russia.
China remains one of the remaining importers for Russian metallurgists, who, amid the war against Ukraine and subsequent sanctions, have lost up to a third of sales in foreign markets.
The fall in world steel prices and the European embargo resulted in a number of Russian companies operating with negative margins in June-July.
In addition, Denis Manturov, Deputy Prime Minister and head of the Ministry of Industry and Trade of the Russian Federation, admitted that at the current ruble exchange rate, the external supplies of the industry, which exported 40 percent of its products , became unprofitable.
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China, which remains one of the few countries “friendly” to Russia, is in no rush to invest in the Russian economy. “If you count those projects in Russia in which large Chinese investors actually participate, then the fingers of one hand are enough,” complained Aleksey Chekunkov, Minister for the Development of the Far East and the Arctic , in July.
In July, Russian oil companies complained about a drop in supplies to China and India. Exports then fell by nearly 30 percent compared to peaks reached in May.
Earlier, Bloomberg said that the country that is preventing the Russian economy from collapsing is Turkey. But this does not mean that the collapse of the Russian economy will not happen. Thus, Russia’s budget deficit in July reached 892 billion rubles, due to which its surplus for the whole of 2022 was reduced by two-thirds.
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Source: korrespondent
I am Dylan Hudson, a dedicated and experienced journalist in the news industry. I have been working for Buna Times, as an author since 2018. My expertise lies in covering sports sections of the website and providing readers with reliable information on current sporting events.