Europeans are forced to stop production. Russian metallurgists, despite sanctions, have hardly reduced the supply of steel to the EU - German media

The EU has imposed sanctions against Russian steel producers. But thanks to the loopholes, Russian companies export the steel to Europe no less, but almost as much as before. Because of this, some European manufacturers are forced to stop production. Despite the fact that in March the European Commission has imposed sanctions against Russian metallurgy, some companies from the Russian Federation continue to supply their products to the European Union.

The German business magazine Wirtschaftswoche is given by N. N. , which is called by a Russian Global Corporation, headed by an oligarch who personally knows President Vladimir Putin. Its key market is Russia. “But N. also makes money in Europe. The goods are still entering the market through a subsidiary in Belgium - quite legal and after customs checks, ”Wirtschaftswoche journalists write.

Video of the day, bring about the fact that the German magazine reveals the name of the corporation, NV Business is known to be about the Russian NLMK, the beneficiary of which is one of the richest Russians Vladimir Lisin. The European NLMK Group Group assets belong to NLMK Belgium Holdings SA Equal partner of Russian metallurgists is Sogepa (Société Wallonene de Gasing Et de Participations SA) - Agency for the Belgian Financial Investment Agency.

Prior to the war, Russian companies sold large batches of thick letter in Europe. They were made from Russian slabs. Due to the exceptions and gaps in European legislation, European countries are still one of the largest buyers of metal products from Russia. According to the customs referred to Wirtschaftswoche, by June 2022, 40% of all registered exports of steel from Russia were exported to the European Union. During the same period last year - only 37%.

Journalists specify that this data is also taken into account three months before the sanctions are imposed. Also note the lack of export statistics to China. But all this is due to exceptions. Yes, the EU Rules 2022/428 does not apply to slab and steel workpiece. This simplifies the work of European subsidiaries and rolling plants. According to some estimates, more than half of the import of steel, which has previously been released from sanctions, namely 4. 7 million tons.

Russian Magnitogorsky MK and Seversstal recognize that sanctions have become a heavy burden. Therefore, they are increasingly sent to China and Turkey. The certificate of origin changes in some products. After that, it is sent to other geographical markets. "However, it is doubtful that Russian companies will be able to do business for a long time," the German media sums up. His interlocutors already note that European sanctions are not holistic and comprehensive.

Because of this, some enterprises are forced to stop production. For example, ArcelorMittal stated one of two blast furnaces in Bremen (Germany) and the stopping of the plant from direct iron recovery in Hamburg (Germany). The company also stops the blast furnace at the plant in Asturia (Spain), and in another Spanish enterprise launched the electric furnace. The main reason for this solution in ArcelorMittal is the high cost of gas and electricity.