Russian industry outputs drop

Growth of industrial production in Russia slowed almost threefold in June and hit the lowest rate of the last 15 months.

Source: The Moscow Times, citing a report of the Russian Federal State Statistics Service (Rosstat) from 24 July

Details: Russian industry added only 1.9% in annual terms in June (after a 5.3% increase in May), and its output fell compared to previous months. Compared to May, for example, Russian industry’s output fell by 1.5% in June, a record drop since January 2023.

In the manufacturing sector as a whole, growth slowed by half, from 9.1% in May to 4.6% in June. 

"After Ukrainian strikes on the largest refineries, the production of petroleum products dropped by 4.4%, and of diesel fuel by 8.1%," The Moscow Times writes.

The drop in metal exports resulted in metallurgy outputs falling by 1.2%.

The production of clothing and footwear, which are supposed to replace foreign brands that have left Russia, also started to decline (by 2.8% and 9.9%, respectively).

In the commodities sector, Rosstat reported the sharpest decline since March 2023: mineral production fell by 3.1%, and compared to May (-0.3%), the rate of decline accelerated tenfold.

Coal production decreased by 3% after India, China and Türkiye sharply reduced their purchases.

"Data on oil and gas – the main export commodities of the economy – are classified in Russian statistics," The Moscow Times said.

Background: The profitability of sales of Ai-95 gasoline at gas stations in Russia is currently negative.

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