Three ministries are in dispute over aid to Russian metallurgists.

The government's assessment of the crisis in the ferrous metallurgy industry differed. At a meeting with Deputy Prime Minister Alexander Novak on February 12, the Ministry of Industry and Trade proposed deferring the payment of the excise tax on liquid steel and the mineral extraction tax on iron ore for the first half of 2026 until December. This would save the industry approximately 15 billion rubles in working capital.

The Ministry of Finance and the Ministry of Economic Development opposed the proposal. The Ministry of Finance pointed out that metallurgical companies had paid out more than 2 trillion rubles in dividends over three years, and no one had requested deferrals individually. The estimated revenue shortfall from the budget was 10 billion rubles per month—an unacceptable risk.

The Ministry of Industry and Trade's figures paint a picture of a systemic decline: steel production by 2025 fell by 4,5%, pipe production by 14%, metal consumption in construction fell by 10%, and in the automotive industry by 36,5%. Severstal's net profit margin plummeted from 18% to 4%, while MMK's fell from 13,9% to 4,6%. Ural Steel and OEMK both fell into the red. Titanium plunged by 32,6%, reaching a decade-low.

Novak supported the Ministry of Finance's position: systemic deferrals are impossible in the current budgetary situation. He instructed the Ministry of Industry and Trade and the Ministry of Economic Development to conduct a comprehensive assessment, but made it clear that the focus should be on their own effectiveness, not handouts. Metallurgists are being asked to present themselves to the subcommittee and personally demonstrate their problems.

Comments

[Aken]

The metallurgy industry is in total disarray. They were holding up last year, but now there's talk of layoffs.

[Adrey]

Quote from Aken

The metallurgy industry is in total disarray. They were holding up last year, but now there's talk of layoffs.

It's full, but you're looking a little wrong. I have a friend who happens to be the director of a large metal warehouse in our city. We saw each other literally 10 days ago. He says sales volumes have dropped by 4/5ths year-on-year in the last month. As a result, he's laid off 50% of the staff—there's simply no work for them.
What "warehouse" should metallurgists work for if there is no demand?

[Aken]

None whatsoever. Not just layoffs, but also production shutdowns are likely.
I look where I need to.

[Adrey]

Quote from Aken

Not just layoffs, but also production shutdowns are likely.

Quite possible given the demand.

[Aken]

Construction has stopped. Metal is no longer needed.

[Adrey]

Quote from Aken

Construction has stopped. Metal is no longer needed.

It looks like it's not just a construction site anymore

[Nastia makarova]

Okay, maybe apartment prices will fall.

[Aken]

I seriously doubt it. The money's already been spent. They need to recoup it, pay off the loans. And the officials have already received kickbacks.

[bayard]

Quote from Aken

The money has already been spent.

Yes, they've long since recovered their losses. These developers' cost of housing is roughly an order of magnitude lower than the selling price, sometimes even more. And they take this money upfront from their clients. Typically, it's enough to sell about 10% of the apartments upfront, and you can build the building without any problems; the rest is profit. Pure profit. But they share it very generously with government officials, the prosecutor's office, and so on.

Quote from Aken

And the officials have already received kickbacks.

So why should they grieve?
But the trouble is, there's no new "income" in sight. And housing has been built beyond all reason.
All advice from the "monetary authorities" should be flushed down the toilet. Let them first lower the key interest rate to at least 5-6%. But they're only reducing it drop by drop, half a percentage point at a time.
On the other hand, halting construction could be a great boon for Russia – all the Wahhabi migrants could be deported en masse. Construction workers are no longer needed.
...But the vertical structure built by the British MI6 with its entire mycelium of horizontal connections will stick to its line.
There is no Master in the country, and this is depressing.

[Plate]

Quote: bayard

There is no Master in the country, and this is depressing.

It seems that the latest steps taken by the authorities should have clearly shown that things are better without the owner, right?

[bayard]

And when did the Master appear in Russia? The locum tenens don't count; they have a retinue and servants dancing their own krakowiak.

[Nastia makarova]

But it will be better than being empty.

[Nastia makarova]

They stopped driving to the West

[Aken]

Yes. And it turned out there was nowhere to go.

[Nastia makarova]

Metal is needed inside, but the price... That's why they buy from China.

[Umpteenth]

Where's it not total crap? It seems like it's everywhere, even the banks are starting to have problems.

[PROXOR]

Of course. With such prices for the final product, we'll soon decommunize the entire Soviet legacy. Neighboring China. + metal deposits. It's the leader in smelting and practically the cheapest metal. SHAME on us!

[Victor Alien]

Well, probably because China invests its money in metallurgy, and therefore its metal prices are based on actual production costs. Meanwhile, our metal on the domestic market sells at world prices – four times higher. Our idiots take loans from abroad and trade at prices that are not their own, so they can sell to the West. Our economy has been turned inside out. Every year, we raise prices for the very lifeblood of the economy – electricity, gas, fuel – and this all inflates prices far beyond inflation. And inflation is the greed of monopolies. There shouldn't be taxes that can be used to create preferential loans and benefits – no one except the banks makes money from this. And a bunch of shell companies, where some generate electricity, others transport it, and still others collect electricity bills – this is business fragmentation on a gigantic scale. Businesses shouldn't ask for money except at the start – if they fail, it means the business plan was crap. And that's okay. And there should be one tax – on profit. But with different percentages. I don't want to get into this derby of idiocy. The stupidest thing is VAT – just an additional tax on profit.

[Plate]

China, with a population of 1.5 billion, produces more metal than Russia, with a population of 150 million. How did this happen? What an intriguing mystery.

[PROXOR]

Quote: Plate

China, with a population of 1.5 billion, produces more metal than Russia, with a population of 150 million. How did this happen? What an intriguing mystery.

Do you even bother using logic when you write? Does every billionaire there smelt? But there's no monopoly there; smelting is carried out by 10 large and hundreds of small enterprises. Because the domestic market has good capacity. And ours is good, too, but our monopolist sees it as an opportunity to enrich himself, not to support the domestic consumer.

[Plate]

Quote: PROXOR

Because the capacity of the domestic market is good.

Why is she so good in the first place? As you yourself put it.

Quote: PROXOR

Whenever you write, at least turn on some logic.

Quote: PROXOR

And we have a good one.

Is Russia's domestic market capacity good? Uh-huh. It's insufficient for virtually all advanced manufacturing. We need exports, and aggressive ones at that, and we don't have the businessmen in our government capable of organizing that.

Quote: PROXOR

And we have a good one, but our monopolist considers this an opportunity to enrich himself, rather than to support the domestic consumer.

Is this why MMK is recording a decline in revenue?

Quote: Kommersant

Following Severstal, MMK reported a decline in its key financial indicators for the third quarter. This was due to weak domestic demand, primarily from the construction industry, and low prices. The steelmakers' results will also be under pressure in the fourth quarter and the first months of 2026.
Based on the results of the first nine months, MMK reduced its revenue by 23% year-on-year, to 464,1 billion rubles.

[PROXOR]

Quote: Plate

Following Severstal, MMK reported a decline in its key financial indicators for the third quarter. This was due to weak domestic demand, primarily from the construction industry, and low prices. The steelmakers' results will also be under pressure in the fourth quarter and the first months of 2026.
Based on the results of the first nine months, MMK reduced its revenue by 23% year-on-year, to 464,1 billion rubles.

So, logic hasn't been applied. The market is collapsing. Those producers that are still operating are choosing what they need at the lowest price. The Republic of Belarus has already reoriented itself toward China. Even taking into account the long logistics, it's cheaper for them to buy there. Our producers also buy where it's cheapest.
The metallurgical bigwigs will work like this for another 5 years and then start whining like AvtoVAZ about government subsidies to keep their "pants" going.

[Alekseev]

Dividend payments of 2 trillion? That is, about 700 billion per year.
It's not a mistake?
What other "ass" can we talk about?
If a guy pays dividends without any working capital, it's time for the prosecutor's office to initiate nationalization proceedings, and the owners can also be prosecuted. Just like the late Baumgarten and Lukashenko did back then.
And what about steel? And cast iron. Are they not needed? And aren't they buying cheap rebar for construction in China?
And large-scale projects, particularly government ones, need to be launched. And steel reserves need to be built up as a strategic resource.
In general, we need work, otherwise we’ve learned to export pigs, and now ah, ah, what to do, what to do!?

[Aken]

I don't know which guy you're talking about, and I suspect you have a vague idea about dividends.

Well, what about steel? And cast iron. Are they not needed?

If there is no demand for reinforcement, then yes, steel and cast iron are not needed.
Having a steel reserve is great. But who needs it when there's no demand for rebar?
And what hindered you from exporting cast iron?

[SSR]

Quote from Aken

The metallurgy industry is in total disarray. They were holding up last year, but now there's talk of layoffs.

Yes?
In 2014, hoarse, how he screwed everyone, should I remind you?
Foxes and Mandurovs, reap.

[ARIONkrsk]

They found money for 2 trillion in dividends, but not for taxes, which means they need to raise the issue of management efficiency and subsequent privatization; they'll find the money right away.

[Aken]

Will metal prices rise after privatization?
And finding money is easy. At the bank. They'll easily give you 100% interest.

[Pravodel]

At the bank. They'll easily give you 100% interest.

So, are you planning to completely ruin the metallurgists, or still find money for them?
If you want to ruin something, then your 100% will come in very handy!

[Aken]

I can't do any of this. Are you confusing me with Mishustin?

[Pravodel]

I can't do any of this.

If you can't do anything, then why are you suggesting borrowing from banks at 100% interest, or are you writing here with the principle: I'll write, and then we'll see what happens...

[Aken]

Can you read? I wrote that the banks will 100% find the money.

[Pravodel]

Well, if that's the case, then I'll ask you too.

Can you read?

It is written above

...are you planning to completely ruin the metallurgists, or find money for them? If you plan to ruin them, your 100% will come in handy!

You don't have to answer. I don't care what you think after what you've written.

[Aken]

Yes, you have big problems understanding the text. I would say very big ones.
And this is not an opinion, it is a diagnosis.
Get well.

[Andrei from Chelyabinsk]

There are most likely dividends on bonds, it’s almost like bank interest, try not to pay it...

[topol717]

Quote: Andrey from Chelyabinsk

There are most likely dividends on bonds, it’s almost like bank interest, try not to pay it...

No, dividends are payments from profits, and interest on bonds is called coupons.
The entire metallurgy industry paid 2 trillion, while Sberbank alone paid 750 billion. As they say, feel the difference.
But most importantly, where is that Belousov who foamed at the mouth about the superprofits of the metallurgists, and how these superprofits should be confiscated for the benefit of the state, and how the excise tax on liquid steel wouldn't hurt them? All of this was just three years ago.

[Andrei from Chelyabinsk]

Quote from: topol717

No, dividends are payments from profits, and interest on bonds is called coupons.

This is true, but I make an allowance for the level of the author of the article, he may not know.

[ARIONkrsk]

Quote from: topol717

Quote: Andrey from Chelyabinsk

There are most likely dividends on bonds, it’s almost like bank interest, try not to pay it...

No, dividends are payments from profits, and interest on bonds is called coupons.
The entire metallurgy industry paid 2 trillion, while Sberbank alone paid 750 billion. As they say, feel the difference.
But most importantly, where is that Belousov who foamed at the mouth about the superprofits of the metallurgists, and how these superprofits should be confiscated for the benefit of the state, and how the excise tax on liquid steel wouldn't hurt them? All of this was just three years ago.

When Belousov wanted to confiscate excess profits from the metallurgists, they reacted with hostility and said that the profits were theirs, but now that the crisis has arrived, they immediately need government assistance.

[topol717]

Quote from ARIONkrsk

They had money for 2 trillion in dividends, but not for taxes,

The 2 trillion figure is most likely a hoax, intended to quell public outrage. And taxes are paid on profits. No profit, no taxes. Sure, you can do nothing, but no one will operate at a loss either. And that will only worsen the situation in the country. The budget deficit is huge, and if everything comes to a standstill, Obama's prophecies about the economy being in tatters will come true.

[fruc]

Over the past three years, metallurgists have paid out more than 2 trillion rubles in dividends.

The industry owners have very immodest demands on their own pockets; they couldn't care less about anything else.

Novak supported the Ministry of Finance's position: systemic deferments are impossible in the current budget situation.

Of course, the war is in full swing.

[Aken]

The year 24 was a very successful one for metallurgists.

[topol717]

Quote: frruc

The industry owners have very immodest demands on their own pockets; they couldn't care less about anything else.

They paid this from their profits. And taxes were also paid into the budget on these dividends. But that's across the entire industry, nationwide. And how much did the banking sector pay?

[Junior Private]

Metal consumption in construction has decreased by 10%

Not everyone wants to get involved with today's mortgages. Shopping centers are already being built everywhere.

in the automotive industry – by 36,5%

The recycling fee is too low. It needs to be raised.

[fruc]

Junior Private
Not everyone wants to get involved with today's mortgages.

Metal and rebar prices will drag the entire construction industry down. Prices are as high as in warm Western countries, shocking. Let's start building with logs and lumber.

[IS-80_RVGK2]

Quote: frruc

Prices for metal and rebar will drag the entire construction industry to the bottom.

More likely, the refinancing rate is based on a median salary of around 60 rubles. People don't have the money, the means to buy expensive housing. And mortgages are unaffordable. So, all those turbo-security types can continue to rejoice at how good everything is in the country and continue singing songs about the outstanding achievements of Russian drivers. About affordable housing, about courtyards filled with cars, about a growing economy, about the bright prospects of Rusnano.

[Got it]

You need to focus on your own effectiveness, not on handouts

- Yeah, great), but everything is collapsing down the chain, and the metallurgy industry has certainly reached it, too, as demand has collapsed, business activity is at rock bottom, freight transportation is a great indicator, industry is slowing down, so why would it need metal? Construction is in the dust. And there's no demand for goods, and naturally, no demand for raw materials. Replenishing working capital is unrealistic with such rates, and this will last a long time! So where will the budget's tax revenues come from if enterprises are shutting down? Only from the pockets of the population.

[topol717]

Quote: Oldi

So where will the budget's tax revenues come from if businesses are shut down? Only from the public's pockets.

So, the population is being transferred to a three-day week, or even reduced. The population also has no income.

[Anthony]

The owners stole 2 trillion to the West and offshore accounts, but they can't find 15 billion (0,7% of the stolen money). Yeah.

[topol717]

Quote: Antony

2 trillion were dragged off to the West and offshore by the owners, and 15 billion

Honestly, I don't even know where that amount came from. Severstal and MMK didn't pay dividends. And they're the largest steelmakers. I doubt that figure was a hoax. Severstal's entire profit for 24 was just 150 yards. Where that 2 trillion came from is unclear.

[Pereira]

They said 2 trillion, so it means 2 trillion.

[Monster_Fat]

It's time to build bunkers. All over the country. They'll come in handy.

[Dedok]

At a meeting with Deputy Prime Minister Alexander Novak on February 12, the Ministry of Industry and Trade proposed deferring the payment of excise tax on liquid steel and mineral extraction tax on iron ore for the first half of 2026 until December.

What is the share (%) of this excise tax and the mineral extraction tax on ore in the final cost of the metal that we buy at the metal warehouse?
Maybe the cost of the final product could be reduced? So that we would buy metal to build things at home, in the country...
This volume will not replace the volumes that were sent abroad, but...
and yes, we still export ferrous scrap metal to China?

[Umpteenth]

You won't be able to get them help. Export is closed.

[Amateur]

HSE experts have finally achieved a result. Russia's economy and finances are "singing romances." Inflation will soon be gone. Because there will be nothing to inflate—production.

We made a remarkable discovery - this thing doesn't work anymore.
(Physicists continue to joke)

[RMT]

The original source says something else: "Okay, you've discovered the effect. Now find its cause."
Collection of Physicists' Jokes. Moscow, 1966.

[Mitka]

Severstal's profitability is falling, but Mardashov is getting richer. How can this be?

[topol717]

Quote: Mitka

Severstal's profitability is falling, but Mardashov is getting richer. How can this be?

Mardashov's fortune is measured in dollars. At the beginning of 25, the dollar was worth 100 rubles, and now it's worth 77. That means Mordashov earned 23%. In fact, Severstal did make some money, but spent all the profits on new construction, workshops, and repairs. So, he's also richer in rubles. But these investments, which made him rich, don't guarantee future profits. And as for that "genius" who came up with the liquid steel tax, I'd like to know where he is now. I wouldn't be surprised if it was Chubais.

[Umptek]

To alleviate the industry's crisis, we must honestly admit that it has become a private rabble of oligarchic privatizers. Having acknowledged this, we must look at the personal pockets of the owners of the fragments of the ferrous metallurgy industry. According to previously shrilly proclaimed principles, the privatizers will elevate their production holdings to heights and levels unheard of under socialism and state ownership of the means of production. Where are these heights and levels? Where are these principles—"not a penny from the state budget, but rather massive payments to budgets at various levels..." Where is all that? And if that doesn't exist, then we must resort to confiscating funds for investment in ourselves and the production we previously privatized from our own funds, savings, wallets, stashes, etc.—from the peignoirs, bras, and panties of our wives, mistresses, lovers, and offspring. This is the prose of market life in a capitalist world. A crusty crust of black bread with margarine for breakfast is food too. They won't die. And taking the trash out to the bins in sweatpants with knees is also normal. This is the return of the overfed and arrogant to their roots. We are waiting for them here, below, on earth. Let them come, let them return.

[phrases]

They only rip their shirts off for the cameras, their thoughts and money dwindling to the sunset. They've concocted a cargo cult out of the national economy, a mediocre carbon copy of capitalism, which, even in its original form, only has appeal under the constant pressure of zombie propaganda. And there's no light on the horizon.

[SergeySmirnov3663]

The capitalist in Russia has no money for anything except his own pockets and the pockets of his protectors.

[Hey]

There's a way to boost construction, and then, naturally, metallurgy and other industries. And not just give money, but buy unsold apartments from builders, not at market prices but at a fixed price offered by the state, with some profit for the builders, of course, but not an exorbitant one. And these apartments could be provided to the military, the Ministry of Internal Affairs, orphans, and for resettlement from dilapidated housing.
And the industries will be revived, and the announced programs will be implemented.

[Plate]

Do you have statistics that show how many military personnel, Interior Ministry employees, and orphans actually need new housing, and how many unsold apartments there are in the country? I don't, by the way, but I suspect your proposal is based on some research.

[tralflot1832]

Comrade Alexey Mordashev (Severstal), besides Lenta, is also targeting Magnit. They say sanctions aren't working—metal exports have practically dropped to zero. If you look at ports in Western and Northwestern Russia, that's true.

[Zheka111]

The scoundrels stole everything, and the profits were transferred to offshore accounts through shady schemes.
Nationalize the enterprises!

[RMT]

Domodedovo was recently nationalized. What's happening to it now? Do you know?

[Zheka111]

I know that the airport is in debt, driven into debt by its previous owner.
All funds were transferred to offshore accounts; no funds were set aside for a stabilization fund (for a rainy day).
The mason abandoned everyone and flew off into the sunset.

The mason and the airport's second alleged beneficiary, Valery Kogan, being residents of other countries, disposed of the assets of a strategic enterprise and transferred its profits abroad in violation of Russian law.

Russia's honored metallurgists will do the same, only before they flee, they'll try to milk the state, blackmailing them into destroying the industry with mass layoffs, non-payment of wages to workers, and disruption of finished product deliveries.
So not only nationalize, but also sentence the guilty to 20 camps

[RMT]

After acquiring Domodedovo, Sheremetyevo shareholders Arkady Rotenberg, Alexander Ponomarenko, and Alexander Skorobogatko became the owners of the largest airport in the country by passenger volume. Less than a year later, the nationalized Domodedovo was once again privately owned.

[cocks]

Of course. It's not a van. No point in messing around with it.