Russia’s largest steel plant announces a sharp profit collapse: Crucial data
Illustrative photo: Russia’s economy is suffering (Getty Images)
Russia’s largest steelmaker, Magnitogorsk Iron and Steel Works (MMK), has reported a sharp drop in profits for the first half of 2025. The company earned nine times less during this period compared to the same timeframe in 2024, according to the Russian outlet The Moscow Times.
MMK’s total profit in the second quarter dropped by 21.1% compared to the first quarter of the year. The company attributed the decline to a slowdown in Russia’s business activity, blaming high interest rates set by the Central Bank.
In the second quarter of 2025, the company earned 2.5 billion rubles, bringing its total profit for the first six months of the year to 5.6 billion rubles — an 88.8% decrease compared to January–June 2024. MMK also saw a drop in revenue, with overall turnover falling by 25%.
This decline in MMK’s income comes amid a general decrease in demand for metallurgical products in Russia. Last year, demand dropped by 6%, and a further decline of 10% is expected by the end of 2025.
Moreover, it’s not just the Russian steel industry that is struggling. Ukrainian intelligence forecasts a complete collapse of Russia’s passenger air transport sector by 2027.
It’s worth noting that the number of Russian companies planning layoffs surged in 2025. In just six months, that number has doubled.
Meanwhile, Germany recently urged the US to support the 18th package of sanctions, describing it as a meaningful way to aid Ukraine. On July 3, the European Commission also called for increased pressure on Russia, warning that the country’s economy is already "overheated."
