CCD: Russian metallurgy is experiencing the deepest crisis since the beginning of the great war in Ukraine

In July 2025, steel production in Russia fell by 10.2% year-on-year, the worst performance in at least 3.5 years. About writes Center for Countering Disinformation, citing Rosstat data.

According to the CCD, the Russian metallurgical industry is experiencing the deepest crisis since the start of the full-scale war in Ukraine.

The CCD notes that Russia's largest enterprises in the industry are showing a sharp decline in production:

• Magnitogorsk Iron and Steel Works cut steel output by 18%;
• "Mechel cut sales by 11%;
• Pipe Metallurgical Company lost up to 22% of its sales.
• Businesses report billions of dollars in losses.

The main reasons for the crisis are international sanctions, the loss of foreign markets, a drop in domestic demand for metal in construction and engineering, and the Central Bank's tough policy that discourages investment.

"The war and sanctions are gradually destroying Russia's industrial backbone. The curtailment of steel production is not only a problem for the oligarchs who own the plants. It means risks of massive layoffs, shutdowns and further economic decline in regions that are critically dependent on the steel industry," the CCD added.

• Pros estimates According to Reuters, Ukrainian drone attacks caused up to 3.1 million tons of processing to be idle in August (i.e. almost half of the total downtime – 48%). Russia has lost about 17% of its processing capacity – This is about 1.2 million barrels per day.