Igor Sechin invited Mikhail Mishustin to regulate metal prices

16.05.2022       

Head of Rosneft In April, Igor Sechin turned to Prime Minister Mikhail Mishustin with proposals for regulating domestic metal prices. According to Kommersant sources familiar with the appeal, the reason was that Rosneft encountered difficulties in the purchase of automotive equipment: KamAZ withdrew the previous commercial offer, and the United Machine-Building Group announced an 80% price increase compared to June 2021. Manufacturers of equipment refer to the rise in the cost of metal and loans due to the increase in the Central Bank's rate.

According to Kommersant's sources, Mikhail Mishustin instructed First Deputy Prime Minister Andrei Belousov and Finance Minister Anton Siluanov to consider Rosneft's proposals. The office of Mr. Belousov confirmed to Kommersant that the relevant departments were instructed to consider and prepare proposals. The Ministry of Industry and Trade told Kommersant that the proposals set out in the company's appeal are being considered. At Rosneft declined to comment.

According to the World Steel Association, the volume of steel consumption in Russia this year will fall by 20%, to 35.1 million tons against 43.9 million tons in 2021. Under these conditions, metallurgists are forced to increase export supplies, but they are complicated by sanctions. In addition, the government is already pursuing a policy of containment of metal prices in the domestic market. According to the Ministry of Industry and Trade, now the cost of the most popular types of metal products among traders has decreased by more than 10% compared to the peak values ​​in March. Rebar fell in price by 11–13%, hot-rolled coil — by 17%. Full text at Kommersant