Russian Economy Department
K: Please to bear in mind that NKP means Nabiullina, Kudrin, Putin, sort of contemporary – Marx, Engels, Lenin.
The address of the MEMBER К2501 TO the METALLURGISTS of RUSSIA
From: Max Kalashnikov, May 3rd, 2016, 08:21 pm
– “Dear metallurgists.
The captains of industry, owners of factories, engineers and Steelworkers-workers!
Today the industry of yours has landed in a severe crisis. For actions of the current government to help you out you can not await. “Allowed” political forces are cowards. A “Committee of 25 January” offers a way out of the impasse. And if you support us, then we will be able to help you. For the time is coming when the country will need a “fire brigade” to rescue Russia from a severe crisis, which because of the inaction of the “elite” deeper a country falls.
To wait it makes no sense. The President is ready to make the new Prime Minister of another notorious neoliberal-monetarist. Either Shuvalov, either Kudrin or Gref. This means that you (and the rest of the industry) are waiting for the suffocating interest on loans, taxes and disastrous failures in subsidies so common for European manufacturers. The Kremlin will not help you.
We are well aware that because of the crisis of overproduction of steel and because China has filled the whole world with its products, all that has caused drop in prices. Americans have spit on the rules of the WTO and is preparing to introduce a 266-percent import duties on Chinese steel, going back to the days of blatant protectionism and forgetting “Holy principles” of freedom of trade. Increased duties on steel enters the Gulf countries.
For domestic steelmakers came the dark times. The demand in the domestic market is too small, but still drops because of the crisis. To increase exports? To cause a further fall in prices and running into a defensive-protectionist barriers in the United States, Europe and Asia? The EU already imposes protective duties on steel products from Russia: 20,5% for welded pipe, cold rolled – from 13.8 to 26.2%. Turkey also raises import duties.
And those black times have come for the republics of Donbass, LPR and DPR, whose economy is based on the metallurgy and manufacture of coke for the industry.
In Russia because of the crisis in the first quarter of 2016, the steel production fell by 6.5%, rolled products – by 12% (“Expert”, No. 14, 2016), the Consumption of metals in the country due to the downturn in the economy at the end of 2015 decreased by 17% (in mechanical engineering – 12%, industry – 25%, construction – 12%).
You, our Steelworkers, are on the verge of plant closures and mass layoffs. The current government almost nothing to offer you.
But we offer: responsively to impose duties on certain goods from those countries that stifle the export from the Russian Federation and maximise demand for the products of ferrous metallurgy of Russia, DPR and LPR in our country! How? Yes, as the Europeans do. With the help of anti-crisis subsidies to producers of final products. (…)“