Russian metallurgical plants, struggling with a significant drop in exports, have sharply cut back on production—a clear signal of the effectiveness of international sanctions against Russia.
In September, Russia’s steel output fell by 18.2% year-over-year, and pig iron production dropped by 9.4%. Official data shows a 9.5% decrease in steel pipe production and a 15.8% reduction in non-alloy steel output, largely due to restricted access to global markets under sanctions.
During the first nine months of this year, Russia produced 45.3 million tons of steel, marking a decline of 5.3 million tons, or 6.3%, from the previous year. Pig iron production from January to September fell by 5.8% to 38.4 million tons, while steel pipe production dropped by 5.2% to 9.6 million tons.
Sanctions have effectively limited Russia’s ability to access export markets. Russian Railways data reveals that metal exports from Russia dropped by 14.7%, reaching only 16.1 million tons from January to September.
Among the hardest hit is TMK, Russia’s largest steel pipe manufacturer, with exports from its Volzhsky Pipe Plant halving and the Chelyabinsk Pipe-Rolling Plant’s exports declining by 60%. Severstal recorded a 23% decrease in exports, while Evraz’s plants saw drops of 14-21%, and Magnitogorsk Iron and Steel Works reported a 12% decline.
This data underscores the growing impact of sanctions on Russia’s industrial output, significantly hindering its economic resilience. With sustained and strengthened sanctions, the pressure on Russia’s industrial and economic stability continues to increase, underscoring the effectiveness of these measures in limiting Moscow’s capacity to support prolonged conflict.
