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Putin was told why the high exchange rate of the ruble is bad

Vladimir Putin discussed how to help metallurgists during sanctions and falling prices.  Photo: Pavel Byrkin / Press Service of the President of the Russian Federation / TASS

Vladimir Putin discussed how to help metallurgists during sanctions and falling prices. Photo: Pavel Byrkin / Press Service of the President of the Russian Federation / TASS

Vladimir Putin discussedhow to help metallurgists during sanctions and falling prices. Irony of fate: exactly one year ago, the government adopted new taxes on the windfall profits of the metallurgical oligarchs. The vice-premiers talked about the unfairness of such enrichment. And now the authorities, on the contrary, have to save private business.

REDIVISION OF THE MARKET

The President explained at the outset why the situation had changed so much:

– Western countries are trying to restrain Russian business as one of the leaders in the world metallurgy and to redistribute the markets in their favor. Restrictions on the work of domestic metallurgists are a clear manifestation of unfair competition, the head of state said.

THE PLAN IS

But, no matter how you feel about the politics of Washington and Brussels, you have to do something. Here is the government’s plan:

1. Since it has become difficult to trade abroad, then we will spend the metal at home. Deputy Prime Minister Denis Manturov at the meeting, he assured that the modernization of housing and communal services, the expansion of the Baikal-Amur Mainline and the construction of new pipelines would load the industry.

Putin added that housing construction would work just as well – it also needs a lot of steel.

2. Manturov also suggested buying metal from factories for the future. It can be stored in the state reserve until better times. Yes, for recovery. Donbass you will need a lot of materials.

3. Well, Russia has already begun to look for new markets. For example, negotiations are currently underway with Turkey to reduce import duties.

– For those who are set on a profitable, predictable business cooperation, we will also be reliable partners. But we will not work to our own detriment with those who show a clearly unfriendly attitude towards us, – the head of the country explained.

TOO STRONG CURRENCY

True, with the export of materials, everything is not simple. Manturov complained that it was precisely those factories that drove the metal for export that sank the most in profits.

– Steel prices are falling sharply. Plus, with the current exchange rate of the ruble, exports become unprofitable, – the vice-premier explained.

World prices are falling due to the recession. We cannot influence this. But the weakening of the ruble would help exporters – for the same price in foreign currency, they would receive more rubles. But this question is for the Central Bank, and not for industrialists.

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