General Director of JSC “Severstal”
Support government investment in creation of additional capacities in the field of ferrous metallurgy in conditions of falling demand for the products of existing companies is “senseless spending”, said the head of the Board of Directors of JSC “Severstal” and the main owner of the company Alexey Mordashov. According to him, in this situation you need to stop the government support the establishment of new metallurgical industries, which create additional pressure on the market.
“We would suggest that the government ceased its decision, the allocation of state support for the creation of topmodeley steel production. This does not exclude investments in production of products of further process stages, but the creation of capacities in steel production needs to stop. It is impossible to ban them, I guess. But measures gospodarski to input power, from our point of view, it is not rational and is a useless expenditure of funds”, — said Mordashov at a meeting with Prime Minister Dmitry Medvedev (quoted by “Interfax”).
The businessman noted that only for the first two months of 2016 steel exports with Russian enterprises decreased by 5% and domestic consumption by 15%, while in 2015 the consumption of metals in Russia fell by 9%.
Mordashov also called on the government to pay attention to the problem of introducing other countries defensive duties, limiting Russian steel producers access to foreign markets. According to the billionaire, often these duties are imposed “absolutely unfair”, while the Russian authorities even at unfair competition on the domestic market of metals react too slowly.
“Yesterday the Commission on protective measures EEU adopted decision on the introduction of countervailing measures under Ukrainian steel rods. The right decision, but we sought it for two years! We would like the government at the level of the Eurasian Commission to make this mechanism consistent with best practices and was faster and more efficient”, — said Mordashov, who is also Chairman of the Supervisory Board of the partnership “Russian Steel”, uniting the largest manufacturers of steel products in Russia.
Dmitry Medvedev at the meeting called the situation in Russian steel industry complex, pointing to issues such as the decline in world metals prices and the reduced demand for them.
“Conservation of exports in such conditions is very difficult, important task, that is, of course, the industry needs to solve, but to think about how to increase the supply of steel products to the domestic market, expanding its application in all sectors of the economy”, — said the head of government.
In turn, the Minister of industry and trade of Russia Denis Manturov stressed that the Russian metallurgical enterprises provide about 10% of all foreign exchange receipts from foreign trade, and indicated the necessity of increasing the share of high value added products.
“We need to increase the volume of exports in high production areas, so as not to give away the margin from processing other countries. Currently, the issue on the inclusion in the contracts of state-owned companies implementing projects abroad, the priority use of domestic steel products,” the Minister explained.