29.03.2024

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Russia allocated 10 billion rubles "credit" to enterprises of DPR and LPR

00:23, 14.05.2017

The Government of the Russian Federation has allocated 10 billion rubles to the «RosReserve» for the purchase of ‘raw materials and materials of the metallurgical industry’. Experts believe that these funds will be used to purchase raw materials for enterprises of the DPR and the LPR. 

The allocation of funds to the «Rosreserve» is stated in the decree of the Russian government of May 4, 2017, signed by the Prime Minister Dmitry Medvedev and posted on the legal information portal. 

The decree does not give details of which metallurgical raw materials should be purchased by the «Rosreserve» and in what amounts. It is stated that its amounts and nomenclature are determined by another government order, N 559-r, dated March 28, 2017. This decree is not available in open access. 

‘Before, there was no news about the «Rosreserve» purchasing raw materials for the iron and steel industry. I can not imagine why the «Rosreserve» needs so much metallurgical raw materials. In the light of the past news about the participation of the agency in helping the steel companies of Donbass, this is the only option that comes to mind,’ says Maxim Khudalov, the director of the ACRA corporate ratings.

According to the expert, at current prices for ore, 10 billion rubles is equivalent to 2 million tons of iron ore. According to the expert's calculations, this will ensure the production of approximately 1.5 million tons of steel. 

‘ The «Rosreserve» provides humanitarian support to enterprises of Donbass at the expense of available reserves,’ confirmed the head of the «Rosreserve», Dmitry Gogin, in an interview with TASS in April 2017. 

Experts note that the supply of raw materials to the enterprises of the DPR and the LPR has actually «restarted» the industry of the Republics.

According to: DNR-Live