Russia ready to protect steelmakers
Sunday, 26 July 2009
MOSCOW, July 25 (Bloomberg): Russia's government is prepared to protect the country's steel industry, Prime Minister Vladimir Putin said as producers of the metal seek more state support.
"We shouldn't be shy about using measures to protect the domestic market," Putin said today as he addressed a meeting in Magnitogorsk, Russia, attended by the billionaire owners of the country's biggest steel, pipe and coal producers.
Russian steelmakers face discrimination because of about 30 restrictive measures in foreign markets, Putin said. The government has channeled loans to companies from OAO Magnitogorsk Iron & Steel to OAO Mechel through state-controlled lenders VTB Group and OAO Sberbank after the world recession caused demand for steel to plunge.
"We need to work more actively to abolish" discriminatory measures, Putin said. "We will do so."
Vladimir Lisin, chairman of OAO Novolipetsk Steel, called on the state to aid Russians buying apartments and building homes to help revive steel demand. OAO Severstal Chief Executive Officer Alexei Mordashov asked the government to help steel producers.
Russia should maintain import duties on some pipes and steel, said Mordashov, whose company is the nation's biggest maker of the metal measured by sales. Lipetsk, Russia-based Novolipetsk is the largest by market value.
Metals companies in Russia may receive preferential treatment in supplying so-called natural monopolies, Putin said, using a phrase employed in the country to refer to state- controlled companies such as natural-gas provider OAO Gazprom.
The $787 billion economic-stimulus package approved in the U.S. in February contains "Buy American" provisions stipulating that most goods purchased by the government with the funds be made in the country.
"We shouldn't be shy about using measures to protect the domestic market," Putin said today as he addressed a meeting in Magnitogorsk, Russia, attended by the billionaire owners of the country's biggest steel, pipe and coal producers.
Russian steelmakers face discrimination because of about 30 restrictive measures in foreign markets, Putin said. The government has channeled loans to companies from OAO Magnitogorsk Iron & Steel to OAO Mechel through state-controlled lenders VTB Group and OAO Sberbank after the world recession caused demand for steel to plunge.
"We need to work more actively to abolish" discriminatory measures, Putin said. "We will do so."
Vladimir Lisin, chairman of OAO Novolipetsk Steel, called on the state to aid Russians buying apartments and building homes to help revive steel demand. OAO Severstal Chief Executive Officer Alexei Mordashov asked the government to help steel producers.
Russia should maintain import duties on some pipes and steel, said Mordashov, whose company is the nation's biggest maker of the metal measured by sales. Lipetsk, Russia-based Novolipetsk is the largest by market value.
Metals companies in Russia may receive preferential treatment in supplying so-called natural monopolies, Putin said, using a phrase employed in the country to refer to state- controlled companies such as natural-gas provider OAO Gazprom.
The $787 billion economic-stimulus package approved in the U.S. in February contains "Buy American" provisions stipulating that most goods purchased by the government with the funds be made in the country.