Russian steel industry withstands impact of sanctions

Sanctions have done little to impact Russia’s steel industry. ArcelorMittal, the largest steel producer outside China, resumed steel supplies to Russia through Kazakhstan in June, a source in Russia’s metals industry told Russian news agency TASS. Russia is among the top steel producers of the world

"Mainly hot-rolled mill products [are supplied to Russia]," he said, adding that pipe manufacturers and large metal traders purchase those products.

Historically ArcelorMittal delivered steel from Kazakhstan to Russia as it was profitable considering the short transportation leg, the source noted. Active supplies resumed on June 10 after being suspended in April, he added.


The Russian steel industry provides a big opportunity for India and that can be explored, according to experts.

Unprecedented sanctions hit Russian companies in March. In March, steel production in Russia decreased only by 1.8% year on year. “…during the 4th sanction package, imports of rolled products and pipes from Russia to the EU were banned, while pig iron and steel semis were free of any sanctions,” according to an article from the GMK Center of Ukraine.

Russia is selling their steel products to Turkey, MENA and Asian countries and import of Russian products is profitable. Russian authorities will subsidise steel exporters’ logistics costs, Russian Deputy Minister of Industry and Trade Viktor Evtukhov said during his speech at the St. Petersburg International Economic Forum (SPIEF) last month.