Feb 13 β€’ 18:53 UTC πŸ‡΅πŸ‡± Poland Rzeczpospolita

Fires are going out in Russian smelters. Thousands of metallurgists are losing their jobs

Russian metallurgists are facing mass job losses as the industry struggles, prompting calls for tax relief from the government.

The Russian metallurgical sector is currently experiencing a severe crisis, which has led to significant job losses among workers. On February 12, Alexey Sentyurin, president of the Russian Metallurgical Association, appealed to the Russian government to delay tax payments related to mineral extraction and steel excise, suggesting that such measures could save companies around 15 billion rubles (approximately 690 million PLN). This plea reflects the dire conditions facing the industry, with companies struggling to maintain operations amid economic challenges.

During a meeting led by Deputy Prime Minister Alexander Novak, representatives from the metallurgical companies voiced their grievances regarding the situation. Sentyurin proposed several measures to support the industry, including tax exemptions for new metallurgy projects for three years, incentives for electrometallurgical businesses, an excise tax on imported steel, reduced export subsidies on railway transport, and freezing environmental fees. However, a representative from the finance ministry reportedly opposed most of these proposals, citing the need to replenish the state budget amidst the ongoing crisis.

The situation highlights the broader implications for the Russian economy as thousands of workers face unemployment, and the metallurgical industry's future hangs in the balance. The government's response to these calls for assistance will be crucial in determining the ability of these companies to recover and protect jobs, as well as the overall health of the Russian economy as it navigates through these challenging times.

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