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Russia Economy in Meltdown as its top companies are forced to slash exports | World | News

by Markel
in World
Reading Time: 3 mins read
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A Russian Railways Document Seen By Reuators Reveals The Country’s Major Exports – Including the Aluminum Giant Rusal and Oil Producer Move By Rail In 2025.

This Prompted Russian Railway to Slash Spending by an Additional 32.5 Billion Rubles (£ 302 Million), Bringing The State Rail Monopoly’s Planned Investment for 2025 to 858.4 Billion Rubles – Down About From Earlier Projections. Russian Railway Hadready Planned to Reduce Spending This year by 40% Compared to 2024, Citing Rising Interest Payment Costs.

Cargo volumes, which fell to a 15-year low 2024, are a key indicator of the overall health of Russia’s expert-driven manufacturing security. Russian Railways is expected to transport 36.7 Million metric tons Less Less Cargo than the Originally Projected 1.24 Billion Tons for 2025. Major Companies, Including Aluminium Producer Rusal and Steel Manufacturers Severstal and MMK.

The document Further revealed the bank of Russia’s Tight Monetary Police – a 21% Key Interest Rate Since October – Has Dampened Construction Activity. It also noted that High Interest Rates have prompted steel manufacturers to scale back on shipment volumes.

There is also a reduced demand from Aluminum Giant Rusal, which is planning to cut annual aluminum output by 250,000 tons due to rising alumina prices. Heightened Sanctations on Metal, Forestry, And Oil Firms Including Gazpromneft Were Also Mentioned as a contributing negative factor.

Russia’s Iron and Steel Sector, Accounting for Close to 5% of National GDP, Has Experienced a Sharp Drop in Export Earnings to LOCRATIVE Markets due to Western Sanctions, CCORDING A report by Moscow consultancy yakov and partners.

Steel Production, Exports and Local Demand Dropped in 2024, According to the World Steel Association. That decline has contained into 2025, according to chermet corporation.

Exports of Wood, Fertilizers, And Metals to China Have Also Declined, Contributing to A 7.5% Decrease in Total Trade Turnover Between this year. The document Further notes that “Third -Party Interference, Primarily Targeting Oil Refineries” – a likely all ukrainian drone strikes – have frther impacted shipment flows.

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