ST. PETERSBURG, November 13. /TASS/. Severstal’s investment program for 2025 will amount to about 165 bln rubles ($2.05 bln), and spending in 2026 is also expected to remain high, CEO of Severstal Management Alexander Shevelev said.
"This year we are confirming our capex forecast of around 165 bln rubles," he said, adding that the company plans substantial investments in 2025-2026 due to several significant large-scale projects underway.
"For next year, at this stage we are only conducting capex assessments—projects are undergoing extremely strict ranking. Capex for next year will also be quite high," he said. Shevelev added that he preferred not to disclose specific figures yet, the company will present them approximately in February.
According to him, the company does not expect production profitability to increase before 2027. The current profitability level stands at 21%. "Profitability at 21% is historically one of the lowest levels. Compared with foreign steelmaking companies, however, our profitability remains significantly higher," Shevelev noted.
He emphasized that profitability growth will depend on rising demand, which in turn is tied to the key interest rate and the ruble exchange rate. At present, the rate does not allow companies to expand, while the ruble’s value encourages imports from China and Kazakhstan and limits the profitability of Russian exports.