Global Steel Trade; Structural Problems and Future Solutions

75. Svetlana Smirnova, United Financial Group, Severstal: Steel the Top Choice (Moscow, November 18, 1998), 41.
76. Gaddy and Ickes, “Russia’s Virtual Economy,” 54, 56.
77. Marshall I. Goldman, “The Cashless Society,” Current History, October 1998, 319.
78. Gaddy and Ickes, “Russia’s Virtual Economy,” 61–62.
79. Id.
80. Report of the Interdepartmental Balance Commission, “Crisis of Payments” (1998) quoted in Gaddy and Ickes,
“Russia’s Virtual Economy,” 56.
81. For simplicity, the term “barter” is used in this report to describe not only goods-for-goods transactions, but
other nonmonetary settlements such as debt sales, swaps, roll-overs, promissory notes (veksels), and tax offsets.
Sources for text box: International Monetary Fund, Russian Federation: Recent Economic Developments–Country
Report No. 99/100, (September 1999), 142–143; “Chelyabenergo, Steel Mills Barter with Tractor Maker,” Interfax
Mining and Metals Report (Moscow, October 30, 1998).
82. The New Generation, Russian Economic Barometer (November 1999) available from http://www.newgen.org/
reb/e_reb.htm; Internet, accessed January 2000.
83. Simon Commander and Christian Mumssen, European Bank for Reconstruction and Development
Understanding Barter in Russia, working paper No. 37 (December 1998), 4–6, 9, 11, 16–19, 24–26.
84. Id.
85. David Woodruff, Money Unmade: Barter and the Fate of Russian Capitalism (Ithaca: Cornell University
Press, 1999), 5.
86. Ibid., preface xiii, xiv.
87. “Russian Economics: Fissure Finance,” review of Money Unmade: Barter and the Fate of Russian
Capitalism, David Woodruff, The Economist, September 18, 1999, 5.
88. Ministry of Economy, Development Strategy until 2005, 1.
89. McKinsey, Steel section, 14; InfoMine-Russia, 30.
90. McKinsey, Steel section, 10, 15, 16.
91. Ibid.,13.
92. Sergei Guriev and Barry Ickes, “Barter in Russian Enterprises: Myths vs. Empirical Evidence,” Russian
Economic Trends Quarterly (The Centre for Economic Reforms, 1999).
93. Gaddy and Ickes, “Russia’s Virtual Economy,” 61.
94. Id.
95. Goldman,“The Cashless Society,” section titled Tires, Assassins, and Tight Money.
96. Stockholm Institute of Transition Economics and East European Economies, Russian Economic Trends
(March 2000), available from http://www.hhs.se/site/ret/ret.htm; Internet; accessed March 22, 2000. [Hereinafter
Stockholm Institute–Russian Economic Trends]
97. International Monetary Fund, Russian Federation: Recent Economic Developments (IMF Staff Country
Report No. 99/100, September 1999), 140 and footnote 75 on page 140.
98. Stockholm Institute–Russian Economic Trends
99. Id.
100. Erik Berglof and Romesh Vaitilingam, eds., Centre for Economic Policy Research, Stuck in Transit:
Rethinking Russian Economic Reform (London, November 1999), 38.
101. Rating Agency “Ekspert PA,” Russian Metallurgy, Part 1–Ferrous Metallurgy (“Ekspert”), Chapter 1.4.
Moscow, 1999. 24,990 million rubles at Rb20.65:$1 (December, 1998 official end of month exchange rate).
102. Id.
103. Graham and Timchenko, 17.
104. Ibid., 26.
105. Ekspert, Chapter 1.4. 17,255 million rubles at Rb20.65:$1 (December, 1998 official end of month exchange rate).
106. McKinsey, Synthesis and Implications section, Exhibit 29.
107. Gustafson, 49. According to First Deputy Finance Minister Sergei Shatalov, tax breaks cost the state budget
$20 billion a year; “In Brief: Tax Breaks Cost $20 Bln,” The Moscow Times, June 27, 2000.
108. Sergei Kuprianov, Russia Money Equity, Research, Company Analysis: Magnitogorsk Metallurgical
Combine, (October 27, 1996), section 9.
109. Magnitogorsk Iron and Steel Works interview.
110. Ekspert, Chapter 1.4., 230, 243, 258, 344.
111. Shevelev, The Current Outlook, 5; Magnitogorsk Iron and Steel Works interview.
112. See eg., Louis Uchitelle, “Russia’s Rust Belt—A Special Report: On the Path to an Open Economy, A
200 Global Steel Trade: Structural Problems and Future Solutions