Russian authorities cannot stop the decline of the metallurgical industry – intelligence

The decline in Russian metallurgy continues. This sector of the Russian economy lost more than 7 percent of production in 2025.

This was reported by the Foreign Intelligence Service of Ukraine.

Russian metallurgy lost 8.6% of steel production in 2024, and another 7.2% in the first quarter of 2025. Export prices fell by 26% in rubles, and domestic demand decreased to 39 million tons compared to 43–45 million in 2024. Sales abroad also fell – by 6 million tons or about 10% of 2024 volumes.

“Large manufacturers are reducing operations and recording losses. Magnitogorsk Metallurgical Plant reported a decrease in steel production by 18%, pig iron – by 9%. Product sales fell by 11-20%. Novolipetsk Plant recorded losses of $15.77 million in the first quarter of 2025, while sales profit decreased 11 times,” the SZR noted.

Despite statements by Russian high-ranking officials about reducing taxes for metallurgists and launching infrastructure projects, fiscal constraints and the budget deficit are nullifying the implementation of such measures.

The intelligence also notes that social tension is growing in Russian society due to high unemployment risks in industrial regions.

It was previously reported that Russia’s coal industry is in crisis due to the loss of the European market and falling world prices. A third of enterprises are on the verge of closure .

As reported, the war against Ukraine, sanctions, and increased spending on the military-industrial complex have led to an increase in prices for basic food products in Russia.

In addition, ordinary Russians are massively defaulting on their credit card debts . Payments on 8.3 million credit cards are overdue for more than three months.

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