TRENDS AND ISSUES OF THE DEVELOPMENT OF THE METALLURGICAL INDUSTRY OF RUSSIA

Abstract

The study is dedicated to identifying the state, trends and developmental features of the Russian metallurgical industry. Metallurgy is one of the most important sectors of the country's economy, but its contribution to GDP is small. The basis of Russian metallurgy is six large vertically and horizontally integrated holdings. The ruble exchange rate, world prices for raw materials and corporate decisions have the greatest influence on the dynamics of their market value. In recent years, metallurgical production in Russia has shown weak growth, but in 2019 there have been negative trends. It should be noted that these trends are global in nature. According to experts, one does not have to wait for a significant improvement, especially given the pandemic of the coronavirus. Negative influence will continue to be exerted by trade wars in foreign markets, the development of the domestic market is also quite doubtful. Among the main problems of companies in the metallurgical industry are the imperfection of state regulation; insufficient capacity and production and technical potential; high level of taxation. Metallurgy is one of those industries where the risks of defaults are always high. About every five years, metallurgy experiences a sharp decline in financial performance due to cyclical downturns in the market. In recent years, the dynamics of the number of metallurgy bankruptcies tended to decrease slightly, however, in the second half of 2019, the number of bankruptcies of enterprises increased by 5.6%. Given the current situation in the global economy, a decline in the metallurgical market is projected in the near future. For domestic producers, the situation could be changed: improvement of the investment climate, balanced regulatory policy, development of the domestic metal products market.

Keywords: state regulation of the economy; metallurgy industry; national economy; conditions for bankruptcy; trade wars.

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Authors

Yuliya V. Lazich – PhD in Economics, Docent; Associate Professor, Department of Industrial Management, Yaroslav-the-Wise Novgorod State University, Veliky Novgorod, Russia.
E-mail: Yuliya.Kolmagorova@novsu.ru. SPIN РИНЦ 8591-7475.
Irina N. Popova – PhD in Sociology, Docent; Associate Professor, Department of Enterprise Economics, Ural State University of Economics, Ekaterinburg, Russia. E-mail: ipopova@k66.ru.
SPIN РИНЦ 7235-4783.

For citation:
Lazich Yu.V., Popova I.N. Trends and Issues of the Development of the Metallurgical Industry of Russia // BENEFICIUM. 2020. No. 2 (35). pp. 16-24. (In Russ.). DOI: http://doi.org/10.34680/BENEFICIUM.2020.2(35).16-24.