Russia is replacing Ukrainian pipes, rolled steel and freight cars with its own
Moscow - Kyiv, May 21 (Navigator, Mikhail Stamm) - Rosstat reported an unexpected acceleration in industrial growth in April 2014. In addition to the growth in electricity production, an unexpected effect was achieved by the replacement of imports of Ukrainian pipes, rolled products and freight railway cars on the Russian market - their supplies to Russia have been limited since February 2014.
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According to estimates by the head of Infoline-Analytics, Mikhail Burmistrov, deliveries of freight cars from Ukraine to the Russian Railways network in January-April decreased by 11 times, to approximately 750 units. “The sharp decline in supplies from Ukraine is due to the destabilization of the political situation in the regions where the main production facilities of Ukrainian railcar manufacturers are located, and the cessation of financing for the purchase of Ukrainian railcars by the largest state leasing companies,” he explains.
The drivers for the growth in supplies of rolled products to the domestic market, according to company analysts, were an increase in consumption volumes (demand in housing construction, carriage building, and pipe production is growing year on year), as well as a decrease in the volume of imports of rolled products and pipes to Russia, including from Ukraine.
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