Posted on 25 Aug 2022
Russia’s Ministry of Industry and Trade has proposed including iron ore, hot rolled and cold rolled coil and non-alloy steel and some other types of metallurgical products in the list of high-tech products.
The draft order of the ministry on making appropriate changes to the list is posted on the website regulation.gov.ru.
The recognition of these products as high-tech will allow metallurgists to count on obtaining preferential financing for export contracts through VEB.RF and Roseximbank, Kallanish notes.
"The Ministry of Industry and Trade of Russia on a regular basis makes changes to the list of high-tech products, works, and services based on the position of the relevant departments of the ministry,” the ministry's press service explained to Interfax. “Relevant proposals are received by the department from interested federal executive bodies and the business community. Changes to the list are aimed at expanding state support by providing subsidies to compensate for lost income by the steelmakers in connection with the provision of concessional financing for export contracts.”
Russia’s new steel strategy for the period through 2030 is planned to be approved in October (see Kallanish passim). The main goals and objectives of the strategy is to secure raw materials for the development of the metallurgical industry in Russia.
In order to ensure it, it is necessary to develop its own chromium ore deposits, as well as effectively regulate the sphere of scrap procurement, claim Russian authorities.
The process of import substitution in Russia to replace the components completely with locally-made products may take at least 10 years. The Russian steel strategy also eyes infrastructure stimulation and exports to Asia.
Russian metallurgists are now working with limited access to Western markets; exports fell by about 20% in the second quarter.
Source:Kallanish
