According to the statement of the Russian Union of Industrialists and Entrepreneurs, there is currently an oversupply of steel products in Russia after the sanctions in the West came into effect. Factories face the threat of production cuts and mass layoffs.
Alexander Shokhin, head of the Russian Union of Industrialists and Entrepreneurs, gave his assessment of the situation at a press conference on the business results of 2022. He stated that "there is no place to put 30 million tons of steel" in the Russian Federation today.
"3 million can be used in the local market," Shokhin said. An industry representative asked; “What will happen to the rest, going to the warehouses?”
Shokhin said, “The main task of the government today should not be to maintain investment activity in the industry, but to protect existing industries. So far, the leading metallurgical companies are keeping the economy afloat, but this requires huge sums of money. Investments are also needed to protect job employment."