The EU has imported €1B worth of Russian metal products in five months, but Russian metallurgists’ profits are declining.

According to Eurostat, from January to May 2025, despite sanctions, the EU imported 2.57 million tons (+1.1% compared to the same period last year) of metallurgical products from Russia, with a cost of €1.06B. Most of these imports are semi-finished products; in five months, 1.49 million tons were sent to the EU totaling €681.9M. Large volumes of pig iron were also imported in the amount of 696,990 tons (+68.5%).

Meanwhile, the net profit of Russia’s largest metallurgical plant, Magnitogorsk Metallurgical Combine, fell to ₽5.6B from January to June 2025, which is about 89% less than last year. The company attributes this sharp decline to decreased business activity and high interest rates in Russia, which restrain domestic demand for metal products, as well as a reduction in exports.

Downward pressure on demand will likely persist in the third quarter, as the high interest rate continues to slow investment in construction and mechanical engineering. It was also reported that passenger car production in Russia in June decreased by 28.2% year-over-year, reaching 45,000 units.