The Russian Steel Industry is Surviving the Sanctions

Sanctions have had little effect on Russia's steel industry. According to a source in Russia's metals industry, ArcelorMittal, the world's largest steel producer outside of China, resumed steel supplies to Russia through Kazakhstan in June. Russia is one of the world's leading steel producers. "The majority of hot-rolled mill products [are supplied to Russia]," he said, adding that pipe manufacturers and large metal traders buy them.
Historically, ArcelorMittal delivered steel from Kazakhstan to Russia because it was profitable given the short transportation leg, according to the source. He added that active supplies resumed on June 10 after being suspended in April. According to experts, the Russian steel industry offers a significant opportunity for India that should be pursued.

In March, Russian companies were subjected to unprecedented sanctions. Steel production in Russia fell by only 1.8 percent year on year in March. According to an article from the GMK Center of Ukraine, "...during the fourth sanction package, imports of rolled products and pipes from Russia to the EU were banned, while pig iron and steel semis were exempt from sanctions."

Russia exports steel to Turkey, the Middle East, and Asia, and imports of Russian goods are profitable. Russian authorities will subsidise the logistics costs of steel exporters, Russian Deputy Minister of Industry and Trade Viktor Evtukhov said last month at the St. Petersburg International Economic Forum (SPIEF).