Magnitka to sell more steel with the construction of Nord Stream’s third stage.


Magnitka to sell more steel with the construction of Nord Stream's third stage

Prime Minister Vladimir Putin visited the Magnitogorsk Iron & Steel Works (MMK), which is commonly known as Magnitka. He participated in the launch of its new rolling mill and met with the worker, who then unanimously decided to join the Popular Front.

Viktor Rashnikov, Magnitka's owner, has never concealed his warm attitude towards the ruling party. He is a United Russia member and was even elected to the State Duma, but later declined the mandate. The prime minister's visit confirmed his foresight in the decision to join the front.

Putin instantly announced that higher domestic demand for Magnitka product was guaranteed: "We'll build the second stage of the East Siberia–Pacific Ocean oil pipeline. In addition, there is a sizable market for pipes in pipeline repair. Soon we will start building a second line parallel to the gas pipeline under the Baltic Sea, called the Nord Stream. Next on the agenda are the South Stream and perhaps another stage of the Nord Stream."

The possible construction of the third stage of Nord Stream will increase the demand for Magnitka's output. Every month Magnitka supplies United Metallurgical Company (UMC) with 50,000 tonnes of large-width plates from Mill 5000. Also, it is the only Russian supplier for the pipeline that is being laid on the Baltic Sea bed (UMC's share is 25%).

Incidentally, in 2009 Putin was there during the launch of Mill 5000. This time he helped commission Mill 2000 that will increase Magnitka's range of products. It will produce cold-rolled and galvanised sheet steel for cars.

"Political stability was one of the main factors that allowed us to start up Mill 5000 and Mill 2000 even during the crisis," Putin explained to the workers. "This is why the role of United Russia, which is often rightly chastised, has been and remains very important... If a person sits in the same position for several years, he begins to think he comes from heaven. This is why we need competition."

The workers were also interested in competition but within the economy rather than in politics. They wanted to know when Ukraine would join the Customs Union because Magnitka has direct rivals there. Putin said they shouldn't worry because Kiev is merely considering this possibility while avoiding the practical steps to get there.

Having finished with the economic issues, the workers switched to personal ones. One of them helped unveil the mystery behind Putin's words "We would waste them in the outhouse" that made him famous.

Smiling modestly, the prime minister admitted that he was very upset about blurting out this phrase at the beginning of his political career. He told his friend about this and his friend said: "I was in a taxi then and the driver told me that there is a guy now who says the right things." Since then Putin has felt more free to use colloquial expressions.

He made two philosophical rather than public image oriented conclusions from that: first, you must always behave decently and second, never put on airs.

"When I was appointed prime minister in 1999, I thought everyone knew me because I was sitting so high up. But then there was that taxi driver who said: 'There is a guy...'"

Anastasia Novikova