On July 23, Russian Prime Minister Vladimir Putin chaired a meeting in the Chelyabinsk region on the country's steel industry, during which he stated that the sector is overcoming the crisis, with the increase in domestic steel production amounting to more than 20 percent in the first half of this year.
Mr. Putin noted that during the last ten years Russian steel companies have invested about Ruble 900 billion (about $30 billion) in large-scale modernization projects, and said that he believes that very soon the Russian steel industry would finally consolidate its position among the world leaders.
Putin regrets criticizing Mechel, new investigations on prices may be opened At the meeting in question, the issues of the shift to long-term contracts and of unreasonably high steel prices were again discussed. The prime minister said he had nothing bad to say about
Mechel, adding that he regretted his criticism over prices in 2008, which contributed to
Mechel's share price falling by 35 percent in one trading session and by 70 percent in total.
However, Russian Federal Antimonopoly Service (FAS) head Igor Artemyev accused the steel and coal companies of inflating prices for Russian consumers by 15-20 percent and in a strong statement said FAS was concerned about six unnamed companies and that it may open new investigations.
Oil pipeline monopoly calls for higher steel taxes Meanwhile, at the meeting, Nikolai Tokarev, the head of the state oil pipeline monopoly Transneft, called on the government to lower import duties on pipes and to raise taxes on the domestic steel industry. However, Russian Deputy Finance Minister Sergei Shatalov answered that the ministry had no plans to study any proposals to review the tax burden on the domestic steel industry, saying that it would be premature to do so.
Putin stresses need for long-term contracts with major customers In his closing remarks at the meeting, Prime Minister Putin said he had heard all opinions and was ready to continue to support the steel industry, but called on the Russian steel producers to build effective joint cooperation with the government, and stressed the need to take into account the requests of the major steel consumers, such as long-term contracts at transparent prices.
"Otherwise, we will have to take other measures, which will be more efficient," Putin said.