The Russian metallurgical industry is gradually declining due to export restrictions, high key interest rates, and competition from Chinese manufacturers who are saturating the market with cheap products. As reported by the Foreign Intelligence Service, "this economic cooling is already forcing the largest players to curtail investment programs," UNN reports.
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According to intelligence, "United Metallurgical Company" abandoned a project to produce seamless pipes in Tatarstan worth 70 billion rubles and terminated the agreement on capital investment protection.
Tehbud LLC, which controls 15% of the polymer pipe market, reduced production by 40% in several regions, and tax authorities additionally charged it 730 million rubles in taxes. In Tatarstan, the production of plastic pipes in the first nine months of 2025 fell by half – to 34.4 thousand tons compared to 68.5 thousand tons a year earlier. The company, which once supplied products for Gazprom and large sports projects, now cannot even repay 2 million rubles of debt to contractors.
Kazan Pipe Plant, which specializes in water pipes, reduced production by 30% due to reduced funding for housing and communal services and high rates. The enterprise, with a revenue of 1 billion rubles in its best times, produced up to 12 thousand tons of products per year, but now it is forced to cut staff, warehouse space, and non-core expenses. The owner personally headed the company, which even ceased its membership in the industry association due to a lack of funds.
The main reasons for the crisis are the drop in demand in the gas and oil sectors, reduced funding for housing and communal services, unprofitable exports, and dumping by Chinese competitors. But all this is a consequence of the Kremlin's policy, which directs budget resources not to support industry, but to finance the war against Ukraine.