Global Steel Trade; Structural Problems and Future Solutions

Outlook, Core Report VV (Paine Webber, May 1994), 343–345; Peter F. Marcus and Karlis M. Kirsis, World Steel
Dynamics, Global Steelmaking: Supply/Demand Outlook, Core Report III (Paine Webber, September 1998), 6–45, 6–
47; Peter F. Marcus and Karlis M. Kirsis, World Steel Dynamics, Global Steelmaking: Supply/Demand Outlook 1999
Update, Core Report MMM (September 1999), 5–7, 5–21, 5–22; Peter F. Marcus and Karlis M. Kirsis, World Steel
Dynamics, Russia–1994 Update, Overcoming Crisis, Monitor Report, (August 1995); InfoMine-Russia; Rating
Agency “Ekspert PA,” Russian Metallurgy, Part 1–Ferrous Metallurgy (Moscow, 1999).
16. President of the Miners and Metallurgical Workers Union of Russia Mikhail Tarashenko stated that, although
there is attrition within the Russian steel workforce, there have been no layoffs. Mikhail Tarasenko, interview with
Department of Commerce officials, February 15, 2000, Moscow. It should be noted however, that there is significant
hidden unemployment in Russia (e.g., people technically employed by a company but who do little or no work for the
company). Also Director of the Department of Metallurgy within the Ministry of Economy of the Russian Federation
Leonid Shevelev, interview by Department of Commerce officials, December 14, 1999, Moscow.
17. McKinsey Global Institute, Unlocking Economic Growth in Russia (Moscow, October 1999), Steel Section
2–3, available from http://www.mckinsey.com; Internet, accessed December 1999; Marcus and Kirsis, “Russian Steel,”
41.
18. Marcus and Kirsis, Core Report NNN, 3–156, 3–157.
19. United Nations, Economic Commission for Europe, “UN/ECE Warns of a Potential World Overcapacity Build
Up in Steel,” (April 8, 1997) press release and “New Steel-Making Capacity Growing Faster than Expected,” (August
5, 1997) press release, available from http://www.unece.org; Internet, accessed on April 19, 2000.
20. McKinsey Global Institute. Synthesis and Implications section, Exhibit 17.
21. Marcus and Kirsis, “Russian Steel,” 6; Marcus and Kirsis, Core Report NNN, 3–157.
22. Marcus and Kirsis, Core Report NNN, 3–156, 3–157; See also McKinsey, Steel section, Exhibit 3.
23. Marcus and Kirsis, Core Report NNN, 3–24, 3–25, 3–96, 3–97, 3–144, 3–145.
24. InfoMine-Russia, 17.
25. Economist Intelligence Unit, Country Reports: Russia, March 1, 2000, 44.
26. Andrew M. Kotas and Roger F. Price, Restructuring of the Ferrous and Non–Ferrous Metal Sectors of
Central Europe—A Review of the Progress Made During the 1990’s and of the Challenges Ahead (Beddows and
Company, 2000), 8, footnote 1 defines “regions” as Western Europe, Eastern Europe, former USSR, North America,
South America, Asia, and other.
27. Kotas and Price, 2, 8.
28. Svetlana Smirnova, United Financial Group, Severstal: Steel the Top Choice (Moscow, November 18, 1998), 54.
29. European Bank for Reconstruction and Development, Transition Report 1999: Ten Years of Transition
(London, 1999), 167.
30. Rose Brady, Kapitalizm: Russia’s Struggle to Free its Economy (Yale University Press, June 1999), 10, 29–30.
31. Ibid., 30.
32. Ibid., 37.
33. Ibid., 36–37.
34. Clifford Gaddy and Barry Ickes, “Russia’s Virtual Economy,” Foreign Affairs, September-October 1998, 53–67.
35. Joseph R. Blasi, Maya Kroumova, Douglas Kruse, Kremlin Capitalism; Privatizing the Russian Economy
(Cornell University Press, 1997), 41.
36. InfoMine-Russia, 17; United Financial Group Equity Analyst Mikhail Seleznev, interviewed by Department of
Commerce officials, February 10, 2000, United Financial Group offices, Moscow.
37. European Bank for Reconstruction and Development, Transition Report 1999, 110.
38. 1990 production data: “Uncertain Future for Russian Steel,” Metal Bulletin Monthly, July 1994, 17; 1991–1994
data, Marcus and Kirsis, Core Report VV , 343–345; 1995–1996 data, Marcus and Kirsis, Core Report III, 6–45, 6–47;
1997–1998 data, Marcus and Kirsis Core Report MMM, 5–7, 5–21, 5–22; Marcus and Kirsis, Russia–1994 Update,
36–39; InfoMine-Russia; Ekspert.
39. Metal Bulletin Research Ltd. and InfoMine-CIS, 4.
40. S. Z. Afonin, Chairman of the Committee of the Russian Federation for Metallurgy, “The Federal Program on
Technical Re-Equipment and Development of Metallurgy of Russia (1993—2000),” approved by the Resolution of the
Government of the Russian Federation (January 24, 1994) [Hereinafter 1993 Steel Development Plan], 4–6.
41. European Bank for Reconstruction and Development, Transition Report 1999 (Paris, 1999) 110, 167.
42. Organization for Economic Cooperation and Development News Release, “Co-operation between OECD and
Russia and Ukraine in the Steel Sector” (Paris, December 21, 1998), 1.
43. European Bank for Reconstruction and Development, Transition Report 1999, 167; Andrew M. Kotas and
198 Global Steel Trade: Structural Problems and Future Solutions