Russian Markets Review Issue 06, October 2013

Government initiatives

Russia hopes to continue its ‘Doing Business’ progress

Russia has climbed up 19 positions in the World Bank’s Doing Business rankings from 111th to 92nd place. The World Bank praised Russia's performance in the speed of being hooked up to electric grids, the streamlining of property registration procedures and the ease of opening of new businesses. Experts note that the country has until now focused on the red-tape elimination while further progress would require substantial institutional and legislative change.
Source: RIA Novosti


Russian Government analyzes country’s WTO membership

Russia’s Prime Minister Dmitry Medvedev gave his evaluation of the country’s first year in the WTO. Mr. Medvedev urged for more active steps in removing trade barriers affecting Russian exporters in various WTO member-states.
Source: Government of Russia


Steel industry news

Capacity increase plans corrected

Two Russian steel producers postpone their plans for EAF shops launch (total capacity of 1.5 Mty) in the currently constructed rebar plants in South Russia till the first half of 2014 intending to buy billets from the market. The long products capacities of 1.3 Mty are to be launched by the end of 2013.

Pipe company ran bankrupt

Volgograd small-diameter pipe plant in South Russia stopped its production as of the end of October due to financial problems and bankruptcy claims. The plant which capacity is 245 thousand t/y has produced just over 70 thousand tons of pipes in 2013 (-50% YTD).

Steel using sectors

Railroad shipments drop

Russian Railroads mark a continued reduction in railroad shipments in September (-1.6% y-o-y) for the 10th month in a row. The largest reduction was recorded in construction materials (-4.8%), oil and oil products (-2.9%) and ferrous metals (-6.7%). The significant drop spurred talks on railroad transport industry reform including the liberalization of locomotive services. At the end of October Russian Railroads have already suggested to liberalize locomotive services on 12 routes.
Source: Rosstat,, Vedomosti

Tractor production halved

Just 6.8 thousand tractors (-52% y-o-y) was produced in Russia in January-August 2013. 57% of those represent foreign makes assembled in Russia.

Largest railcar producer to keep production level in 2014

Russia’s largest railcar manufacturer Uralvagonzavod plans to produce 20 thousand railcars in 2013 (27 thousand in 2012, total Russian production – 71 thousand). The same level of production is planned for 2014. 40% of cars to be manufactured will have increased load features.

Car production drop

One of Russia’s largest automotive manufacturers Avtotor expects to produce 230 thousand cars in 2013 against the originally planned 250 thousand. The head of the company explained the 8% reduction by the global automotive market drop this year evaluated at about 14% y-o-y.

November 08, 2013