I saw an interesting report on Russia's economic situation that made me think. Severstal, the Russian steel giant, continues to face significant pressures in the first quarter of this year. CEO Alexander Shevelev confirmed what many market observers already suspected: the steel sector is in serious trouble.

The numbers are quite revealing. Steel consumption in Q1 2026 plummeted by 15% compared to the same period last year. To give an idea of the severity, this surpasses even the 14% decline recorded for all of 2025. In short, the hemorrhaging has not stopped; in fact, it has accelerated.

What clearly emerges is that Russia's economic situation is experiencing a significant slowdown. It is not just a problem for the steel industry but reflects a much broader trend. Russia experienced its first economic growth slowdown since 2022, and the economic situation continues to deteriorate due to restrictive monetary policy choices.

The Russian central bank maintains high interest rates to contain inflation, a move understandable from a currency stability perspective but one that is crushing domestic demand. Companies are caught in a vice: soaring financing costs and collapsing steel demand. For those following these markets, Russia's economic situation represents an economic contraction scenario that could have significant repercussions across the entire regional industrial value chain.