Russia to consider buying metals to stockpile to support steelmakers

Evraz

01/08/2022 12:10

* This content was produced in Russia where the law
restricts
coverage of Russian military operations in Ukraine

    MOSCOW, Aug 1 (Reuters) - Russia will consider purchasing
metals to stockpile to support domestic steelmakers which have
been hit by Western sanctions imposed on Moscow, trade minister
Denis Manturov said on Monday.
    Russian President Vladimir Putin in April called for
structural changes in Russia's metals industry to counter
Western sanctions he said were starving it of some components
and restricting its ability to sell some goods abroad.
 urn:newsml:reuters.com:*:nL5N2WI2DN
    Speaking at a televised meeting with Putin and industry
officials, Manturov said that exports of metals from Russia fell
by 20% in the second quarter. He did not say whether he compared
it with the first quarter of 2022 or with April-June, 2021.
    The industry's plants are running at 80% of their capacity
down from 93% as domestic demand has fallen as well, said
Manturov, who was promoted to deputy prime minister by Putin's
decree in July.  urn:newsml:reuters.com:*:nL8N2YW1BR
    A relatively strong rouble and attempts to find new export
markets by offering price discounts leave little profit margin
for Russian steelmakers, he said, adding that the government
should also consider reducing the fiscal burden on them.
    Manturov did not disclose the amount of metals which Russia
could buy from its producers, but said that the stockpiled metal
could then be used to ease pressure on the domestic market in
case of sharp price rises or for the rebuilding of
infrastructure in the Donbas.
    Russia sent thousands of troops to Ukraine on Feb. 24. Since
then it has taken the Luhansk region, one of two provinces that
comprise the Donbas in eastern Ukraine.

 (Reporting by Reuters; editing by Jason Neely)