State support not always helps car industry

The actual victory of metallurgical companies in the recent conflict with machine builders because of a sharp rise in prices for rolled metal at first glance looks like a surprise. Market accustomed that the state generously supports the auto industry in crisis - for example, this time the company lined up for government guarantees, the Government has already allocated 23 billion rubles for recycling, not is the line of start of preferential car loans and leasing subsidy.

Against the background of this direct burden on the budget it would be logical to assume that the state will find an instrument of pressure on the rich metallurgical companies that, revenue of which grew due to the devaluation of the ruble. In addition, in 2011, automakers actually won in the previous price war: with the support of Igor Sechin, the Deputy Prime Minister then, they signed an agreement on favorable pricing formula. And in a similar dispute with the producers of fertilizers, the state recently succeeded in freezing domestic prices. But in the end, despite the claims of the Industry and Trade Ministry and the Federal Antimonopoly Service on the possibility of introduction of export duties on rolled metal, machine builders signed agreements on supply of metal with growth in prices by 30-60%.

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Oil and Gas, Metals and Mining, News from Russia and neighbouring countries
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