The Russian Federal Agency for State Reserves (Rosrezerv) in 2017 will receive RUB 10 billion from the government`s Reserve Fund to finance the costs associated with the recovery of stocks raw materials and materials of the metallurgical industry, RBC reports citing the government`s order of May 4, 2017, signed by Russian Prime Minister Dmitry Medvedev.
According to the agency, Rosrezerv acts as an intermediary in the supply of raw materials to the metallurgical plants of the so-called ”DPR” and ”LPR”.
The order does not specify the types and total volume of raw materials for the steelmaking industry to be purchased by Rosrezerv, only indicated that their volume and nomenclature are determined by another government order – 559-r, dated March 28, 2017, which has not been made publicly available.
Rosrezerv is responsible for ensuring Russia`s mobilization needs. It also provides humanitarian assistance. However, almost all data on its operational activity is classified.
Previously, there have been no reports on major purchases by Rosrezerv of raw materials for the steelmaking industry. The procurement plans for 2013-2017 posted on the agency`s website do not envisage the replenishment of stocks of such raw materials, while the website on state procurement data does not contain any information on past or future purchases of such raw materials by Rosrezerv.
It should be noted that steelmaking plants in the occupied Donbas stopped in February as a result of halted supplies of ore.
In April, RBC reported that Rosrezerv was involved in the mechanism of providing the ”DPR” and ”LPR” plants with iron ore from Russia.
According to the publication, EuroСhem company owned by Andrey Melnichenko will monthly ship small quantities of iron ore to the Cherepovets-2 station as part of the supply for Rosrezerv. At the same time, in April, the Russian Railways provided a 25 percent discount on the transportation of iron ore from the Cherepovets-2 station in Vologda region to the Uspenskaya station of Rostov region bordering with the ”DPR”.
In addition to EuroChem, Severstal and Metalloinvest will also participate in the supply chain for the militants, sources close to major metallurgical holdings say. However, these companies have denied their involvement in the deliveries to the ”DPR” and ”LPR”.