The crisis in the Russian metallurgy due to sanctions on exports and a long period of high key interest rates of the central bank is already comparable to the crisis of the 1990s. This was stated by Oleksandr Shevelev, CEO of PJSC "Severstal", which provides 14% of steel production in the Russian Federation, reports UNN with reference to the Center for Countering Disinformation.
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According to the Center, steel demand has sharply fallen, and the biggest threat of the current crisis is a complete halt to the industry's development. According to Rosstat data, last year steel production in Russia decreased by 1.5%, and this year the decline accelerated to a catastrophic 10.2% in June year-on-year. Exports also "sagged": in 2024, 20 million tons were shipped abroad compared to 31 million in 2021.
Earlier, the CPD already reported that metallurgy in Russia is experiencing its deepest crisis since the beginning of Russia's full-scale invasion of Ukraine.
The war step by step "erodes" Russia's industrial base. The Kremlin is trying to disguise the true state of affairs, saying that sanctions allegedly do not cause any harm, and the economy shows unprecedented growth. However, the rapid decline of key industries increasingly painfully hits the Russians themselves, who are increasingly financing the war out of their own pockets - the statement says.