I have noticed that Russia's economic situation is becoming increasingly critical in the industrial sector. Severstal, the Russian steel giant, has just reported very worrying numbers for the first quarter: steel consumption has plummeted by 15% compared to the same period last year. Even more significant is the fact that this decline exceeds the 14% recorded for the entire 2025.

What is striking is how Russia's economic situation is directly affecting major industrial players as well. CEO Alexander Shevelev emphasized that the steel industry continues to navigate very difficult waters, with demand for Russian steel not showing signs of stabilizing. Companies are simply reducing their orders.

But this decline in the steel sector is only the tip of the iceberg. It reflects a much broader economic slowdown: last year, Russia experienced its first real growth slowdown since 2022. The central bank has kept interest rates high in an attempt to contain inflation, and this monetary tightening is crushing businesses from all sides.

In short, Russia's economic situation is in a serious contraction phase, and companies like Severstal are the perfect barometer. When your steel orders drop by double digits year over year, it means there is something structural wrong with the underlying economy.