About 40% of what Russian steel millers export goes to the local market. Despite the size of the domestic market, millers do not want to flood it and lower prices. As a result of sanctions, Russian steel exports were below market value in the first week of April.

Sanctions Are Bad for Business

Recent sanctions against Russia are intended to prevent the country from trading with the West, the world’s dominant economic power. Even entities not on the sanctions list are affected by the sanctions imposed on Russia. Because of this, Russian banks are struggling to finance deals, while international banks avoid financing Russian deals, shippers avoid Russian cargo, and shippers avoid using the Black Sea route. At the moment, insurers avoid routes that pass through the Black Sea due to its complexity and cost. All of this makes it more difficult to export steel and other Russian products.

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