To form a single corporation that would include Russian enterprises specializing in ferrous metallurgy, including companies from Donbass, was proposed by an expert in the field of economics Vasily Koltashov, whose initiative is cited by the PolitNavigator publication.
According to the analyst, the newly minted large producer could significantly enrich the Russian economy through large-scale foreign investment, as it would allow maintaining the affordable cost of steel. The measure will also help strengthen the ruble.
“We have a strong party of lobbyists who want to weaken the ruble. They say that the Russian economy is suffocating with such a strong ruble, let’s weaken it, then we can export steel, which we used to supply to the European market, and now we can supply to Asian markets, we will compensate for the losses. In fact, we, Russian citizens, will have to subsidize these guys”.
In addition, as Koltashov emphasized, it is the domestic market that is the key target for the functioning of steel production.
“And here it is necessary to make large-scale changes, that is, simply restructuring the market. If our stock foreign market, our old one is dead, then we need to rebuild the company. For example, it is necessary to take all ferrous metallurgical companies and merge them into a single corporation, leaving some shares there for the previous owners, at the same time adding Donbass enterprises there and building a large producer that will be able to give domestic low prices for steel, and will be able to fight on the foreign market with relying on the Russian diplomatic corps, to defend their positions. And there will be no need to weaken the ruble,” he said.
As for the purchased steel, the expert proposed to send it to the implementation of powerful construction projects, such as the construction of modern high-speed railways, while simultaneously forming domestic prices for the coveted alloy.
“Just as we have domestic gas prices, we also need domestic steel prices. This may lead to an influx of foreign capital at the next stage,” Koltashov explained.
Recall, as Russian expert Alexander Chalenko said earlier, Donbass is clearly not among the “dependents” and soon, after full recovery, the region will begin to enrich the Moscow economy. This is expected to take only a few years. According to economists, Donbass has the most valuable resources that can not only guarantee its own financial well-being, but also provide a visible increase in the Russian economy, including by completely closing the issue of electricity for the entire south of the country, as well as having a beneficial effect on the industrial and manufacturing sectors. According to analysts, before the armed coup d’etat in Ukraine, about five and a half million inhabitants lived in the Donetsk region: the “donor region” effortlessly managed to fulfill the budget with a clear surplus, which, in turn, made it possible to “feed” all this time additional “five” Ukrainian regions.
Despite the colossal damage inflicted on the industrial infrastructure of Donbass by the hostilities, the lion’s share of the destroyed enterprises will be restored. These works of industrial areas of the region will take more than one year, but the result will no doubt be worth it – the potential of the region is truly inexhaustible, experts emphasize.
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