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MIL OSI Translation. Region: Russian Federation –

The Government held a meeting on the situation with the rise in prices for metal products and measures taken to resolve it. The event with the participation of representatives of metallurgical companies was held by First Deputy Prime Minister Andrei Belousov and Deputy Prime Minister Yuri Borisov.

The reason was the sharp rise in prices for metal products and rolled metal products in Russia (rebar, sheet and shaped metal, pipes, etc.), which amounted to about 30% as of late 2020 – early 2021. The Government has repeatedly received appeals and complaints from consumers of metal products – in particular, from developers who are large consumers of fittings.

Based on the results of the discussion, the Ministry of Construction, together with the Ministry of Transport, was instructed to send information on large infrastructure projects to the Ministry of Industry and Trade and the Russian Steel Association to study the possibility of concluding direct contracts for the supply of metal products in order to reduce its cost for builders.

The Ministry of Industry and Trade and the Ministry of Construction, together with industry associations and interested organizations, need to intensify work on the consolidation of orders for the supply of metal products and the conclusion of direct long-term contracts providing for the fixing of prices for metal products.

The Ministry of Industry and Trade, together with the Ministry of Finance, Rosrezerv and interested federal executive bodies, must submit to the Government the agreed proposals on the feasibility of creating a mechanism that provides for the possibility of market regulation of prices, including through the creation of stocks of metal products for the implementation of price interventions, similar to the mechanism used in case of fluctuations in grain prices …

Also, the responsible ministries were instructed to consider and, if necessary, prepare proposals for providing state support measures for metallurgical companies, depending on the dynamics of changes in metal prices, within a month, together with the Russian Union of Industrialists and Entrepreneurs and the Russian Steel Association.

The event was also attended by Minister of Construction and Housing and Public Utilities Irek Fayzullin, State Secretary – Deputy Minister of Industry and Trade Vladimir Evtukhov, Deputy Minister of Economic Development Ilya Torosov, Chairman of the Board of Directors of Evraz Group S.A. Alexander Abramov, Chairman of the Board of Directors of PJSC Severstal Alexey Mordashov, President, Chairman of the Management Board of PJSC NLMK Grigory Fedorishin, General Director of Metalloinvest Management Company Nazim Efendiev, General Director of PJSC MMK Pavel Shilyaev, Executive Director of the Russian Steel Association Alexey Sentyurin, other representatives of executive authorities and business.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

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