Russian Markets Review Issue 07, November 2013
Russian Government to support steel consumption
Russian Prime Minister Dmitry Medvedev met with the heads of the country’s leading steel companies to discuss the key challenges the industry currently faces. An unfavorable global steel market situation and a decelerating demand in the sector were named among the central issues leading to a rapidly declining profitability of the Russian steel sector along with excessive debt load of the companies. The Government suggested a number of measures to alleviate the situation including stimulated steel consumption, introduction of restructuring programs and easing the increased regulatory burden on the steel sector.
Source: Government of Russia, Vedomosti
Russian industry against more stringent antimonopoly regulation
Russia’s antitrust watchdog Federal Antimonopoly Service drafted a number of amendments to the national competition law aimed at tightening state control over economic activity in many spheres. The amendments include among others provisions obliging companies to publish their trade practices, prohibiting agency contracts and extending antimonopoly regulation into the sphere of intellectual property. The country’s leading business associations have already expressed their strong disapproval of the amendments pointing out that those are against the OECD recommendations that Russia previously agreed to embed in the national legislation.
Source: Government of Russia, RSPP, Vedomosti, RBC
Steel industry news
New capacities of semi-finished products in South Russia
Abinsk Electrometallurgical Plant (Krasnodar region, South Russia) inaugurated new billet production facilities with steelmaking capacity of 0.95 mmt/y. The installed capacities are to supply the plant’s re-rolling shop launched in 2010.
Steel using sectors
Volkswagen to invest €1.2 bln in Russia
Volkswagen Group plans to invest another €1.2 billion in Russia until 2018. The company deems Russia the main strategic growth market in Europe and plans to launch engine production facilities near the existing Kaluga plant (Central Russia). In 2006-2013 Volkswagen has already invested €1.3 bln in local production and new models development in Russia.
Avtovaz car sales falling
Russia’s leading automotive producer Avotvaz sold 44,7 thousand cars in November (down 2.2% to October sales). January-November 2013 saw a decrease in Avtovaz sales by 12.8% (487 970) compared to the same period in 2012. However the company remains country’s largest producer with a market share of around 17%.