Russian metallurgy experienced its deepest crisis since the invasion of Ukraine: production collapsed to its worst levels - CPD
Kyiv • UNN
In July 2025, the production of metallurgical products in Russia decreased by 10.2% year-on-year. This is the worst indicator in at least the last 3.5 years, with billions in losses recorded by key enterprises.
In July 2025, metallurgical production in Russia decreased by 10.2% year-on-year. This is the worst indicator in at least the last 3.5 years, according to Rosstat. This was reported by UNN with reference to the Center for Countering Disinformation.
Details
The collapse was recorded at key enterprises: Magnitogorsk Iron and Steel Works reduced steel production by 18%, "Mechel" — sales by 11%, and Pipe Metallurgical Company lost up to 22% of sales. The plants report billions in losses.
Experts name international sanctions, loss of external markets, reduction of domestic demand in construction and mechanical engineering, as well as the strict monetary policy of the Russian Central Bank as the main reasons for the decline.
According to the Center for Countering Disinformation, the curtailment of metallurgical production carries risks of mass layoffs and further economic decline in Russian regions.
War and sanctions are gradually destroying Russia's industrial framework. The curtailment of metallurgical production is not only a problem for the oligarchs who own the plants. It carries risks of mass layoffs, plant closures, and further economic decline in regions critically dependent on metallurgy.
Recall
Recently, the CCD noted that the real state of Russia's space industry, which has become a secondary direction for the Kremlin in wartime, is far from what Russian propaganda portrays it to be. This industry is gradually collapsing.
The terrorist country has lost access to critical Western technologies due to sanctions and can no longer compete with the US and China. Also, space launches for foreign customers have almost stopped in Russia.