Victor Rashnicov
General Director MMK

    Magnitogorsk Iron & Steel Works JSC (MMK) is making its own contribution to the economic cooperation between Russia and Kazakhstan. Its economic relations with enterprises in Kazakhstan were established in Soviet times and they still keep developing today.
The Sokolovsko-Sarbaisky Mining Production Association (SSMPA) accounts for most of the raw materials supplied to MMK. Mainly, it is fluxed pellets and iron-ore concentrate. Raw materials are specially prepared for technologies used. In fact, the Sokolovsk-Sarbaisk Mining Production Association mill was built in the 1960s primarily for serving needs of MMK.
Independent customs policies of both states, of course, create certain difficulties for trade. Nevertheless, they have found a proper way of cooperation between these two enterprises that ensures competitiveness of their products in the Russian market.
This cooperation has become even more stable lately. This is vital, as MMK is a major trading partner of SSMPA consuming up to 80 % of its output.
Until recently the relationship between MMK and Kazakhstan’s Ispat Karmet steel concern was confused. Both enterprises hold similar views of prospects of the Russian and world steel markets. Neither of them is going to reduce production volumes.
Karagandaugol, which is also incorporated in Ispat Karmet, was always considered MMK’s strategic partner in terms of coal concentrate shipments. However, in the last two years its products became too costly and supplies were eventually stopped altogether. But not long ago senior management of the two groups tried to resolve this problem. The general director of MMK Victor Rashnikov believes that this good will allow for improvements in the future.
«We hope to continue developing and strengthening our ties with Kazakhstan since it is dictated by both historical necessity and MMK’s geographic location», noted Victor Rashnikov. «We are ready to continue doing business with Kazakh partners and we are hoping for a further mutually beneficial cooperation», he stressed.
In general, Kazakhstan is also a consumer of MMK’s products. Its rolled stock is used by large Imstalkon JSC, which is a subsidiary of Zhambylsky steelwork mill – Imstalkon JSC, Kazakhstan – trade and financing Ltd, Donskoy Mining and Dressing Plant and many others, including those of independent entrepreneurs. MMK is shipping practically all kinds of rolled stock to the Kazakh market, but not in the quantities it would hope to, the main reason being the bureaucratic differences between Russian and Kazakh customs regulations. Nevertheless, trading does not stop and some increase has even developed in 2002. This can be credited in part to the impact of Nursultan Nazarbayev’s presidential programs. On the basis of first six month improvements Victor Rashnikov predicts bigger and better future business between MMK and its Kazakh partners.