18 March 2024
The National Recycling Association RUSLOM.COM continues to publish its regular newsletter for international partners, containing valuable proprietary information on the Russian metals and scrap markets: RUSLOM.COM self-regulatory news and updates; the national metal scrap processing industry stories; as well as the latest Rusmet Rating Agency market indices. We welcome your feedback and communication, based on the above newsletter.
Index
ASSOCIATION NEWS: ANNOUNCEMENTS AND POST-RELEASES. 3
Victor Kovshevny to speak on 25 April 2024 in Volgograd. 8
NEWS OF THE RUSSIAN SCRAP PROCESSING INDUSTRY.. 9
Russia’s ferrous scrap market in January-February. 9
MMK to install new scrap processing equipment 10
RUSMET RATING AGENCY INDICES. 11
METALLURGY NEWS OF RUSSIA.. 12
Dynamics of metallurgical industry. 12
Copper: Exports to European Union. 13
Precious metals in Chukotka. 14
Russia to develop Zavitinskoye deposit 14
MACROECONOMIC NEWS OF RUSSIA.. 15
Ilya Torosov proposes introducing carbon fee system in Russia. 15
Far Eastern ports to retain ferrous metal export status until 2024. 15
Up to 400 waste recycling enterprises to be built in Russia by 2030. 17
ASSOCIATION NEWS: ANNOUNCEMENTS AND POST-RELEASES
19th International Forum Scrap of Ferrous and Non-ferrous Metals and Moscow International Recycling Expo 2024 successfully held in Moscow on 4-7 March
On 4-7 March 2024 the 19th International Forum “Scrap of Ferrous and Non-Ferrous Metals” and the exhibition of recycling technologies MIR-Expo-2024 were successfully held at the International Trade Centre in Moscow. The events were organised by Rusmet Rating Agency in cooperation with the National Recycling Association RUSLOM.COM.
This annual event has for many years been the largest industry forum in Russia dedicated to ferrous and non-ferrous scrap. This year’s event was attended by over 1000 delegates and 75 speakers, including representatives from business, government, and foreign delegations.
The general sponsor was Translom, the silver sponsors were Business-Orbita and Tinkoff-Business, and the strategic partner was HuaHong Rus. Other sponsors included Mozen, Rosbank, Vtorion and Vtorium. The event was also supported by Metallokassa, Silnye Machiny, TKB Banking Group and Torg-Koms.
The first day’s programme began with a meeting of the working group on the reform of personal income tax on citizens’ income from scrap with the participation of members of committees and commissions of the National Recycling Association RUSLOM.COM.
At the workshop “Diversification of scrap business to work with extended producer responsibility and production of finished products from scrap and waste” the speakers were: Natalia Belyaeva, General Director of Delphi; Alexander Kurilyak, Head of the Audit Department of the Smart Eco Systems digital platform; Victor Kovshevny, Director of the Association RUSLOM.COM; Dmitry Stukalov, Project Manager of Rusmet Rating Agency; and Andrey Zelenin, Director of Development and Legal Affairs of Rusmet Rating Agency. Victor Kovshevny estimated that independent scrap collectors do not have the conditions for growth within the current business conditions until 2030, or it is necessary to wait for the situation with sanctions to change for the better. At the same time, scrap will grow in all market segments except lead. The speaker also presented analyses for previous years.
The first day also saw an open meeting of the members of the Association RUSLOM.COM. Evidence of the Russian economy’s turn towards the Global South and East in the scrap and metallurgy sector was the participation of foreign delegations from Iran (Iranian Recycling Association), Turkey (OTASAD – Turkish Vehicle Recycling Association), and China (Association of Recyclers of Secondary Resources).
The delegations gave reports on the activities of the respective foreign associations, including the exchange of experience in the protection of business interests and the implementation of legislative initiatives. The Iranian Recycling Association and RUSLOM.COM signed a memorandum of cooperation. One of the European industry associations, the Hungarian Recycling Association HOSZ, also took an active part in the event.
At the general meeting of RUSLOM.COM members, the issues of reporting for 2023 and estimates for 2024 were discussed. RUSLOM.COM also presented proposals for implementing the Russian government’s instructions within the strategy for the development of domestic metallurgy until 2030. Also on the agenda were the monitoring the market situation in Russia’s regions and applications for experts to join the Association’s committees.
The event ended with an intellectual interactive industry contest on knowledge of metal and scrap markets, waste management, ecology, technologies, and business partners. A special prize was awarded to the winners by Oleg Semibratov, CEO of Mozen. Mozen is an expert in the development of payment services. Together with Alfa-Bank, the company has developed a cashless transfer service for scrap collectors. The platform offers payments for all types of scrap, providing convenience through one-time data filling, automatic division into acts by type of scrap, and payments via bank transfer or card numbers.
The second day of the event started with an interactive session dedicated to the issues of cash and non-cash settlements for scrap, during which speakers from the banking segment presented their products: Mozen; Prosto|Bank; Jump.Finance, Vtorium, as well as products of Almaz, Promsvyazbank, and Rosbank. The participants were awarded the diploma “Reliable Partner of the Scrap Industry”. Each of the speakers interacted with the audience, posed questions to the participants and summarised the discussion.
The first part of the seminar on Precious Metals Scrap and WEEE Management was held in parallel with the session on cashless settlements and featured the following speakers. Ekaterina Radionova, Deputy General Director for Operations of JSC “ECOPOLIS Corporation”, spoke at the seminar on “Specifics of WEEE Management”. Andrey Belov, an expert from Sacha Corporation, former Deputy Head of the Russian State Assay Chamber, Head of the Federal State Assay Supervision Department of the Federal Assay Chamber, discussed in detail the organisation of collection of scrap and waste containing precious metals.
Anna Shtern, Chairwoman of RUSLOM.COM’s the Precious Metals Scrap and Waste Management Committee, spoke on “Trends in state regulation of the precious metals scrap sector”, providing an overview of changes and current aspects of legislation. Maxim Mikhailov, Commercial Director of Aurora LLC, the moderator of the seminar, spoke on the topic: “Indicators of the markets of scrap and waste of precious metals and WEEE. Harvesting, pricing, dynamics”, where he reviewed the main market indicators in this area.
The opening ceremony of Moscow International Recycling Expo 2024 and the strategic session of the 19th International Forum “Scrap of Ferrous and Non-Ferrous Metals” took place on 5 March. Vladimir Volodkin, President of the National Recycling Association RUSLOM.COM, delivered a welcoming speech.
Alexey Sentyurin, representative of the Russian Steel Association, provided information on current trends and achievements in the industry. The speaker highlighted the following points: in 2023, total domestic steel consumption in Russia increased to 46.3 million tonnes. The growth was particularly high in the automotive industry – 29.3%, the engineering industry also showed a significant increase, while the energy industry showed a decrease of 4.5%. Steel consumption in the country grew by 7.4%, while exports remained at the same level as in 2022.
Speaking at the strategy session, Andrey Savelyev, Head of the Ferrous Metallurgy Development Department of the Metallurgy and Materials Department of the Ministry of Industry and Trade of the Russian Federation, stressed the need to register citizens involved in the sale of scrap metal as entrepreneurs.
Alexander Kobenko, Member of the Coordination Council of the Association “Delovaya Rossiya” Member of the Board of Directors of JSC AKRON HOLDING, discussed the issues of agency VAT, ELVs recycling, personal income tax, and export restrictions, stressing the need for cooperation among all industry professionals.
On 5 March, international cooperation agreements were signed between HuaHong Rus and the National Recycling Association RUSLOM.COM, and between RUSLOM.COM and the Iranian Recycling Association. A partnership development agreement was also signed between RUSLOM.COM and the Eurasian Peoples’ Assembly.
At the industry session “Overview of the global market of steel scrap, special steel scrap, and ferroalloys” leading world and Russian experts focused on important aspects of the industry.
The first speaker was Roman Ayvarzhi, Commercial Director of Vtorion Marketplace, who spoke about the digital platform. This was followed by a presentation from Victor Kovshevny, Director of the National Recycling Association RUSLOM.COM. He spoke about trends in the ferrous scrap market and summarised the forecasts for the year.
Kristina Gronskaya, Head of Analytics and Research in the Scrap and Waste Management Industry at RA Rusmet, spoke about ferrous scrap price indices and presented RA Rusmet’s weekly review with analytical material on ferrous and non-ferrous scrap.
Other speakers at the industry session included Alexander Shepelev, General Director of Taurus Motors LLC; Anton Fomchenko, representative of HuaHong Rus; Maxim Tretyakov, Chairman of the Board of the Electrocable Association; Dmitry Ostrovsky, co-founder of OOO NPTK “OSK”, “Torg-Koms” group of companies; Natalia Prutova, General Director of “Spetsmarket-M”; Anthea Shi, scrap expert from the Chinese analytical and pricing agency Mysteel Global; Pavel Drynkin, General Director of LLC “BUSINESS-ORBITA”.
The presentations provided a comprehensive overview of the global steel scrap market, touching on topics such as country needs, export and import potential, alternative raw material solutions, government regulation, as well as aspects of decarbonisation and circular economy. The speakers made valuable contributions to the understanding of current trends and prospects for the industry.
The second day of the exhibition ended with a performance of “The Steelworkers”, a Soviet industrial drama in a professional production, based on a play written in the 1970s on the initiative of Oleg Yefremov.
On the last day of the event, the final of the Metal Cup Championship for students of technical colleges and universities was held. Each team presented projects for the construction of a mini metallurgical plant and a sponge iron plant.
The Forum also included a seminar for accountants and CFOs, held by representatives of the Federal Tax Service.
On 6 March the conference “Primary and Secondary Aluminium Market: 2024-2030 Prospects” was held with the support of RUSLOM.COM, the Aluminium Association, and the Secondary Aluminium Association. The conference was moderated by Victor Kovshevny, Director of RUSLOM.COM. Among the speakers were: Nikita Taganovich, Head of the Recycling Sector of the Aluminium Association, Director of Recycling at RUSAL; Vladimir Lukin, Partner at Kept; Alexey Alipchenko, Member of the Presidium of RUSLOM.COM; Sergey Urazov, General Director of the Recycling Sector of the Aluminium Association, Director of Recycling at RUSAL; Vladimir Lukin, Partner at Kept; Alexey Alipchenko, Member of the Presidium of RUSLOM. COM; Sergey Urazov, CEO of Ancouver; Andrey Tsydenov, CEO of Aluminium Alloy Plant; Alexander Kobenko, Member of the Board of Directors of AKRON HOLDING; Evgeny Konyakhin, Chairman of the Board of Directors of Yug-Met Production Technopark; Mrat Abdualinov, Director of Metallinvest (Omsk); Dmitry Puzanov, Director of the Council of Industrial Enterprises of Secondary Nonferrous Metallurgy; Dmitry Stukalov, Project Manager of RA Rusmet, and others.
Experts spoke about the impact of decarbonisation and sanctions on the aluminium market, as well as trends in government regulation in Russia and globally. Market analysis was presented, including results for 2023 and forecasts for 2024. The panel discussion focused on technologies to improve the efficiency of aluminium scrap processing, barriers and opportunities for the use of secondary aluminium, the impact of global trade flows on the Russian market, and government support for market development. In particular, according to Alexander Kobenko, Member of the Board of Directors of AKRON HOLDING, the share of aluminium in the automotive industry will grow, so the ELVs recycling programme should be reviewed and methods of recycling Chinese cars should be studied.
Alongside the aluminium conference, the second part of the seminar was dedicated to WEEE and precious metals scrap. The keynote speaker was precious metals specialist Andrey Belov, an expert from Sacha Corporation, former Deputy Head of the Russian State Assay Chamber and Head of the Federal State Assay Supervision Department of the Federal Assay Chamber. Drawing on more than 30 years of experience in the system of Federal State Assay Supervision, Andrey Belov highlighted key aspects, including laws and regulations governing the circulation, accounting and storage of precious metals for organisations involved in the use and circulation of precious metals.
On 6 March a meeting of the Committee on Economics, Insurance and Financial Risks of the Association RUSLOM.COM was also held. An extended meeting of the Council for the Development of the Recycling Economy and Ecology of the Chamber of Commerce and Industry of the Russian Federation discussed key aspects of the reform of end-of-life vehicles recycling.
The final part of the event was devoted to discussing the regional agenda, focusing on the implementation of pilot projects in different regions of the country. Experts, ELVs recyclers and representatives of regional chambers of commerce and industry took part in the event and made important recommendations on how to form a unified strategy for the reform of the ELVs recycling sector in Russia. The Association RUSLOM.COM and AKRON HOLDING, as well as Rating Agency Rusmet, proposed the creation of a single register of vehicle recyclers and its synchronisation with state portal of public services “Gosuslugi”.
The Metal Cup Championship ended with a ceremony where the merits and professionalism of the participants were acknowledged. The winners were awarded with prizes, and exhibitors and experts received honorary diplomas for their contribution to development and innovation in the metallurgical industry.
On the fourth day of the Forum, 7 March, the participants had the opportunity to visit the town of Elektrostal and get acquainted with the activities of the Elektrostal Heavy Machinery Plant. This is the only company in Russia that specialises in the production of fluid film bearings for rolling mills.
In addition, an excursion was organised to the Ecoplast plant in Moscow, which specialises in high-tech processing of mixed hull plastics. Located in the SEZ Technopolis Moscow, Ecoplast produces high quality recycled plastic granules ABS, PS, PP. The plant recycles a variety of plastic products, including office equipment enclosures, household appliances, electronics and other goods, ensuring stable quality of secondary products.
The forum and exhibition attracted more than 1,000 participants and became the most notable event during the year in the Russian scrap processing and related industries, also attracting a significant interest on the part of Russia’s international business partners from the Global South and East, opening up greater prospects for external economic cooperation.
RUSLOM.COM members visited scrap processing companies in UAE
The visit was hosted by partners from MRAI India and METCO Company.
Al Asfaran Steel, Masonry & Aluminium Smelting LLC was one of the sites where the discussions took place. The company is a manufacturer of steel structures and a processor of ferrous and non-ferrous scrap. In the near future it plans to open an aluminium production facility for its own scrap.
The second company – Nimet Recycling – is a young company specialising in stainless steels as well as zinc, copper, aluminium and other scrap. The company imports secondary raw materials and supplies its products to many countries around the world.
Victor Kovshevny to moderate and speak at Current issues of cable and wire products industry conference
Victor Kovshevny, Director of the National Recycling Association RUSLOM.COM, on 21 March 2024 will moderate and speak at the conference “Current issues of cable and wire products industry”, which to be held at the Cabex exhibition in Moscow.
The Director of RUSLOM.COM will present an overview of the secondary aluminium and copper markets. The event will also be attended by experts from the Aluminium Association, Sibur, the state system “Honest Mark”, Work.ru and others.
Cabex is the 22nd International Exhibition of Cable and Wiring Products, Equipment and Materials for their Production, which is being held with the participation of more than 200 manufacturers and suppliers.
Victor Kovshevny to speak on 25 April 2024 in Volgograd
Victor Kovshevny, Director of the National Recycling Association RUSLOM.COM, will speak at the 10th International Conference “Stainless Steel and the Russian Market” in Volgograd on 25 April 2024 with the topic “The situation on the Russian market of scrap for the production of stainless steel: current problems and solutions. Possibilities of implementing import substitution projects for stainless steel production in Russia”.
NEWS OF THE RUSSIAN SCRAP PROCESSING INDUSTRY
Russia’s ferrous scrap market in January-February
Rail shipments. Monthly dynamics. January 2024 – February 2024
Over 11 days of February, the total volume of ferrous scrap shipments to steelmakers by rail was 212.3 thousand tonnes (+217% growth over the same period last month, positive dynamics is observed in almost all enterprises of the country, which is due to the low volume of shipments in early January during the holiday period).
In the Urals, 81.6 thousand tonnes were shipped, which is 147% more than in the same period of January. The largest volume of scrap was delivered to PNTZ plant (17.9 thousand tonnes). Deliveries to the main plants in the Central Region totalled 66.9 thousand tonnes. (an increase of 286% compared to the same period in January). The largest volume was delivered to NLMK (24.4 thousand tonnes).
The volume of scrap shipped to plants in the South in February was 43.7 thousand tonnes (260% growth over the same period in January). The largest volume was shipped to Volzhsky (22.3 thousand tonnes). Based on the results of 11 days of February, on month total rail deliveries of scrap to steelmakers in Siberia and the Far East increased by 365% to 20.1 thousand tonnes.
Ferrous scrap market. Arrivals. Railway shipments. Monthly dynamics. January 2024 – February 2024. Arrivals by rail.
In the period from 01 to 11 February, the volume of scrap arriving at the country’s main steelworks amounted to 218.4 thousand tonnes. On month there was a decrease of 8% in the current period (-18.3 thousand tonnes).
Scrap receipts at the Urals plants increased by 22%, with the largest increases recorded at PromSort-Ural (59%), PNTZ (55%), UGMKTyumen (111%), and Ashinsky MZ (122%), and decreases at MMK (-6%), Seversky (-12%), and Nadezhdinsky MZ (-24%). The amount of scrap received by the Central Region mills decreased by 5%.
The largest decreases were observed at NLMK (-35%), OMK-Steel (-39%), with a significant increase at BMZ (+125%). In the South there was a 32% decrease in scrap receipts. Significant negative dynamics were recorded at Abinsky EMZ (-78%), Balakovo Steel (-64%), with growth at Volzhsky (+71%). In Siberia and the Far East, the volume of scrap arriving by rail decreased by 32% during the period under review. The volume of scrap arriving at Amurstal in January decreased by 38%, while at Evraz ZSMK it remained virtually unchanged.
MMK to install new scrap processing equipment
Magnitogorsk Iron and Steel Works (MMK) is planning to install new scrap processing equipment at the plant in 2024 as part of its modernisation programme.
“Currently, a large-scale reconstruction of the copra shop is in full swing, which includes the introduction of new equipment. In particular, for the first time in many years, a new colonnade will be put into operation, which will open up new possibilities. There will be new cranes, new fire cutting platforms. It is also planned to install new scrap processing equipment in 2024,” the press service said.
In 2023, the plant will receive about 3.5 million tonnes of scrap metal, of which 1.1 million tonnes will be oversized (requiring additional processing).
RUSAL implements new recycling project
RUSAL, one of the world’s largest aluminium producers, has implemented a pilot project at the Volgograd Aluminium Smelter to recycle scrap and use it in the production of cylindrical ingots. Increased scrap processing allows RUSAL to expand its portfolio of low carbon footprint products and is one of RUSAL’s strategic goals.
The Volgograd Aluminium Smelter has the capacity to produce about 70 thousand tonnes of primary aluminium. In 2021, the smelter launched a project to recycle industrial scrap; in 2023, the volume of recycled scrap was 1,150 tonnes, tripling compared to 2022. The quality of cylindrical ingots containing recycled scrap remains as high as that of a product made only from primary aluminium.
RUSMET RATING AGENCY INDICES
The Weekly Rusmet Index for Steel Scrap 3A FCA Russia domestic on 11th week 2024 (11-17 Mar) settled at 26 000 RUB/mt (ex VAT). The Index decreased by 200 RUB/mt (0,8%) compared to previous week.
For 11th week 2024 (11-17 Mar) Rusmet Billet Index FOB Black Sea settled at 44 925 RUB/mt, Rusmet HRC FOB Black Sea Index settled at 51 591 RUB/mt (up 0,5%), Rusmet CRC FOB Black Sea Index settled at 63 918 RUB/mt (down 2,3%), Rusmet Rebar FOB Black Sea Index settled at 45 559 RUB/mt (down 0,2%).
Rusmet Coal FOB Australia (62% CSR) Index compared to previous week decreased by $16 (6,4%) to 238$/mt, Index for Coal FOB Australia (70% CSR) compared to previous week decreased by $21 (6,8%) and is equal to 284$/mt.
METALLURGY NEWS OF RUSSIA
Dynamics of metallurgical industry
The steel industry in Russia showed positive dynamics at the beginning of 2024. According to a report by the World Steel Association (WSA), steel production in January increased by 1.2% year-on-year to 6.2 million tonnes in 2023.
WSA statistics confirm that ferrous steel companies in Russia have maintained a positive trend in monthly terms since May 2023. This period is accompanied by a steady increase in steel production volumes, which exceed 6 million tonnes per month.
Despite the positive trend in the first quarter of 2024, it should be noted that at the end of 2023 there was a 5.6% decline in Russian steel production, which amounted to 76 million tonnes. This decline was due to a sharp drop in January and February, which was driven by the high base of the pre-sanctions months of 2022.
According to the WSA, total global steel production fell by 1.6% to 148.1 million tonnes in January 2024. Russia remains one of the world’s largest steel producers, along with China, India, Japan and the US.
It is important to note that China, the world’s largest steel producer, saw a 6.9% fall in melt production, while other countries showed increases: India (7.3%), Turkey (25%), South Korea (1.5%), Japan (0.6%), and Iran (39%).
As mentioned earlier, the significant decline in steel production in Russia in 2022 was due to the imposition of anti-Russian sanctions. However, steel companies managed to diversify their export markets, allowing them to increase shipments to Africa, South America, and the Middle East.
Copper: Exports to European Union
According to S&P, EU countries’ purchases of Russian-produced copper totalled 62,372 tonnes in 2023, down 79% year-on-year.
Stable shipments of the metal from Russia to EU countries in 2021-2022, at around 296,000 tonnes, were sharply reduced in 2023. However, the analysis shows that Russian copper producers have successfully redirected their exports to China and Turkey. Russia diverted almost half of its lost EU shipments of 111,580 tonnes to these countries. China imported 370,815 tonnes of copper from Russia in 2023, up 14% year-on-year. Turkey also increased its purchases to 171,260 tonnes (+61%).
The EU countries imported a total of 673,100 tonnes of copper last year, with a decrease of 20%.
It is not only copper that has been subject to trade shifts. It is also worth noting that the EU has reduced its imports of Russian titanium. In 2023, the EU bought 6,410.1 tonnes of titanium, down 20% on-year. This also reflects a 12% decrease in the monetary value of imports.
Investment trends
In 2022, investment projects in the metal industry covered only 10 regions of Russia; by the end of 2023, this number increased to 30 regions. The total amount of investment projects for 2023 reached 177.31 billion roubles.
Analysts put the following regions at the top of the list:
- The Sverdlovsk region (16.1%)
- Moscow and the Moscow region (8.9%)
- Petersburg and the Leningrad region (7.1%)
- Rostov region (5.4%)
In addition to the leading regions, the top 10 also includes the Republic of Tatarstan, the Chelyabinsk, Orenburg, Novosibirsk and Tula regions, and the Krasnoyarsk Territory. Each of these regions accounts for 3.6% of the total number of metallurgical investment projects in the country.
The Ferrous and Non-Ferrous Scrap Forum will bring together leading players from the steel and scrap industries to share their experiences and new visions for the future of the industry.
Precious metals in Chukotka
The Chukotka Autonomous Okrug continues to strengthen its position in precious metals mining. According to the Okrug’s Department of Industrial Policy, silver and gold production increased in January 2024, while the figures for natural gas and brown coal decreased.
Since the beginning of this year, Chukotka has produced 9.2 tonnes of silver, which is 20% more than in January 2023. Dynamics for gold: almost 1.6 tonnes, an increase of 38% year-on-year. Mining companies, including Highland Gold, played a key role, contributing 75% of the region’s
Coal production was also an important indicator, with Beringpromugol increasing production from 107 tonnes in January last year to over 120 tonnes this year. Lignite production, however, fell by half.
Russia to develop Zavitinskoye deposit
The Russian government has announced an auction for the Zavitinskoye lithium deposit in the Zabaikalsk Krai, with a minimum bid of 1.059 billion roubles.
The Zavitinskoye deposit contains rare earth metals including lithium, tantalum, and niobium.
Alexander Kozlov, head of the Russian Ministry of Natural Resources and Environment, stressed the importance of starting the development of rare metals deposits in the short term to meet the country’s domestic needs and reduce dependence on imports.
Russia ranks 5th in the world in terms of lithium reserves, giving it a strategic advantage in supplying this important resource to innovative industries.
MACROECONOMIC NEWS OF RUSSIA
Ilya Torosov proposes introducing carbon fee system in Russia
Ilya Torosov, First Deputy Minister of Economy of the Russian Federation, expresses the need to introduce a carbon fee system in Russia. The aim is to raise funds to decarbonise the country. The introduction of a carbon tax is currently being discussed with the business community and the authorities. He stressed the possibility of extending the carbon fee to certain sectors only, subject to certain conditions.
In connection with the introduction of the Carbon Border Adjustment Mechanism (CBAM) in the European Union, which affects imports of steel, aluminium, fertilisers, cement, electricity and hydrogen, the Deputy Minister noted that Russia is also actively implementing carbon regulation. Countries such as China, India, Turkey and Kazakhstan are responding to the European cross-border mechanism by implementing their carbon management strategies.
Mr. Torosov stressed that successful decarbonisation of the economy requires the involvement of business. The issues of greenhouse gas emissions accounting in all sectors of the economy are becoming key, and without the active participation of business it will be impossible to achieve decarbonisation targets.
Far Eastern ports to retain ferrous metal export status until 2024
Russian Prime Minister Mikhail Mishustin has signed a decree allowing the export of ferrous metal waste and scrap only from nine Russian sea ports until the end of 2024. These include Arkhangelsk, the main port of St. Petersburg, Vladivostok, Dudinka, Kaliningrad, Korsakov, Magadan, Murmansk, and Petropavlovsk-Kamchatsky. It is important to note that southern ports, including Nakhodka, Slavyanka, and Baltiysk, were excluded from the list last year.
The decree will take effect from the date of publication and will remain in force until the end of this year.
Restrictions on scrap exports will remain in place until 30 June 2024. In order to support the industrial development strategy, the government has extended the in-quota tariff of 5%, but not less than €15 per tonne, and the out-of-quota tariff of 5%, but not less than €290 per tonne. These measures are designed to regulate exports and maintain the competitiveness of Russian goods on the world market.
The tariff quota is allocated according to the historical principle. The Ministry of Industry and Trade decides on 80% of the tariff quota, taking into account export data and regional coefficients. For example, Kamchatka Krai has a coefficient of 2.75, Krasnoyarsk Krai – 4, and Primorsky Krai and Arkhangelsk Oblast have a coefficient of 1.
An additional 20% of the tariff quota will be allocated to participants in foreign trade activities that have supplied ferrous waste and scrap to backbone organisations or Russian metallurgical enterprises from July to the end of 2023.
The only port on the list with rail access is Vladivostok. It is likely that the restriction on the number of ports for exporting scrap through the Far Eastern Federal District is due to the support of Amurstal, the only metallurgical plant in the region that uses scrap as a raw material. By the end of 2023, the company will have increased its output by 30%.
The ports of Magadan, Korsakov and Petropavlovsk-Kamchatsky have been given permission to export scrap, thanks to the federal “General Clean-Up” programme, which aims to raise parts of sunken ships in Far Eastern waters. All regions exceeded their targets for wreck removal last year.
Deputy Prime Minister Victoria Abramchenko reported on implementation of President’s instructions on key areas of environmental protection activities
The Clean Air project:
At the end of April, air pollution calculations will be prepared for 29 new participating cities. Comprehensive emission reduction plans will be developed for them in 2025. Work is underway to expand the air quality monitoring network, which will help improve living conditions for more than 6 million people by 2030.
Elimination of hazardous waste:
By 2024, the Krasny Bor landfill will have the infrastructure to remove accumulated pollutants. By 2028, work at the Usolie-Sibirskoye industrial site in Baikalsk will be fully financed. Based on the level of hazard, 50 new sites will be selected for remediation.
Water improvement:
It is planned to ensure the treatment of at least 1.4 cubic kilometres of polluted wastewater by 2030. The first step will be to modernise the plants that discharge the highest volumes of untreated wastewater into rivers. 25 treatment plants will be built in the Baikal region.
Forming recycling economy:
Producers will be responsible for recycling all packaging from 2027. A list of recyclable goods to be used in public procurement has been established. A ban on burying recyclable waste will be implemented in 2030. The construction of 8 eco-industrial parks for waste recycling is planned. 400 waste management facilities will be built by 2030.
Biodiversity conservation and ecotourism development:
Work is underway to conserve and restore the snow leopard, reintroduce the Przewalski’s horse, recover the Amur tiger, grey and bowhead whales, and the Eurasian leopard. By 2030, 6 new centres for the reintroduction of rare and endangered animals and birds will be established. Tourist infrastructure will be developed in all national parks by 2030. This year, 19 of them will receive more than 80 million roubles for this purpose.
Up to 400 waste recycling enterprises to be built in Russia by 2030
Victoria Abramchenko, Deputy Prime Minister of the Russian Federation, informed that a task had been set to build 8 eco-industrial parks necessary for waste utilisation. Six such facilities are already under construction in the Moscow, Leningrad, Nizhny Novgorod, Chelyabinsk, Novosibirsk Regions, and Stavropol Krai.
Agreements have been signed with 27 residents of these eco-industrial parks to open 36 production facilities at the sites with total private investment of over RUB 18 billion.
In addition, the Government is working with regions and businesses to create 400 waste management facilities by 2030.
CONTACT: Alexey Kondratyev Director, Public Relations National Recycling Association RUSLOM.COM Address: 119017 Bolshaya Ordynka st., 50 b.1, Moscow, Russian Federation Phone/fax:+7 (499) 490-49-28 Mobile: +7 (903) 363-53-93 E-mail: a.kondratiev@ruslom.com
