Devaluation of the ruble, sanctions, poor conditions in the commodity markets and the general deterioration of the macroeconomic situation led to a significant reduction in the volume of foreign trade turnover: for January-August 2015 the import of goods and services to Russia in monetary terms fell by 38,9% (from 193,3 bln USD to 118,1 bln USD) in accordance with the correspondence period of 2014; the export reduced by 31,6% (from 343,1 bln USD to 234,5 bln USD). The positive trade surplus amounted to 116,4 bln USD, that indicates the stable demand on the Russian exported goods in the foreign market.

Speaking about Russia’s foreign partners, the attention to the countries of the Eurasian economic union and BRICS (Brazil, Russia, India, China and South Africa) should to be paid. The share of these countries in the total export/import volume is increasing and EU countries’ share is reducing.

Kazakhstan can be mentioned an example, appeared for the first time in the Top-10 of countries leading in export of Russian goods and rose by 3 positions at once. Ukraine, formerly included in the Top-10, fell by 6 positions during the period under review, and quit the list of the Russia’s main trade partners. Today the Ukraine’s share in the Russian export is 2,5% or 6 bln USD (12th position).

For the period of January-August 2015, China has increased the share in the total import by 1,7%. Belarus and Kazakhstan also increased their shares. Ukraine reduced the supplies share by 1% and today 3,2% of imported goods and services on the total amount of 3,7 bln USD fell to this country.

Speaking about the commodity structure of the foreign trade, the new trend can be noted: the share of the mineral fuel in the total export volume has significantly reduces (from 71,4% to 64,8%) in the period of January-August 2015. Despite this position continues playing the essential role, Russia begins to diversify its export. It is a kind of compulsory measure caused by falling HC-hydrocarbon prices. The total export volume of the mineral raw materials in the monetary terms amounted to 152,1 bln USD.

Other goods of the total export volume: ferrous metal (4,6% of the total export), fertilizers (2,6%), precious and semi-precious stones (2,4%), equipment and mechanical devices (2,4%), aluminum and goods thereof (2,2%), armament (2,1%), wood (1,8%), products of chemical industry (1,8%), copper and goods thereof (1,3%), cereals (1,3%), other foods and services (12,8%).

Picture 1. Commodity structure of export, January-August 2015г., % of total export in monetary terms

As for the import, the decrease in car industry by 3,2% can be explained the fall of cars demand among the population. The commodity structure in general remains the same and the reprocessing products are mainly purchased: mechanical equipment (18,6% of total import), electrical machinery and equipment (10,7%), cars (8,6%), pharmaceuticals (4,7%), plastics and products thereof (4,2%), optical equipment (2,6%), products of ferrous metals (2,6%) and others (see Picture 2).

Picture 2. Commodity structure of import, January-August 2015г., % of total import in monetary terms

Summing up the results, the Credinform experts forecast the decrease in the foreign trade turnover will continue the current year following the external reasons, such as the ruble devaluation and falling the HC-hydrocarbon prices. The low base and a kind of stabilization in the currency market can lead to the restoration of positions in 2016.

The further diversifying of the commodity structure of our export will be likely continued. The domestic manufacturer was given a competitive advantage and its products became significantly cheaper for the foreign buyers that can be a key to the external markets.

Information Agency Credinform has prepared the ranking of the largest Russian metallurgical enterprises, engaged in melting of cast iron and steel.

Top-10 enterprises in terms of revenue were selected according to the data from the Statistical Register for the latest available period (for the year 2014). The enterprises were ranked by decrease in loan protection factor (see table 1).

Loan protection factor (x) is the ratio of pre-tax earnings and loan interest to the sum of interest payable. It characterizes the security level of creditors from non-payment of interest for the granted loan and shows how many times during the reporting period the company earned means to pay the interest on loans.

The recommended value is >1.

In other words, the higher is the ratio, the better the company services its debts; if the ratio is lower than 1, the company will face the financial difficulties and liquidity crisis in case of one-time requirements of creditors to fulfil obligations.

For the most full and fair opinion about the company’s financial condition, not only the average values of the indicators should be taken into account, but also the whole set of financial indicators and ratios.

The loan protection factor of the largest enterprises, engaged in cast iron and steel production (Top-10), varies from 236,7 (JSC URAL STEEL) to 0,4 (JSC CHELYABINSK METALLURGICAL PLANT).

OJSC MAGNITOGORSK IRON & STEEL WORKS also has the ratio lower than recommended value. Debt load is high – the sum of interest payable is higher than net profit before tax; in further lending, under the conditions of falling world prices for metals, it is necessary to estimate the possible consequences of drop in revenue and falling demand for products.

Picture 1. Loan protection factor and revenue of the largest metallurgical enterprises, engaged in cast iron and steel production (Top-10)

According to the latest financial statements (2014), the revenue of the leading enterprises, engaged in cast iron and steel production (Top-10), amounted to 1085,8 bln RUB, that is 13,2% higher than in 2013. Revenue growth is significantly higher than GDP growth and inflation rate for the same period.

The larger is the enterprise, the lower is the loan protection factor: retention of the achieved development potential, the development of new sales markets, rebuilding of the resource base – all these requires significant investment and affects the companies' finances.

The industry leaders should be noted separately: the largest enterprises by revenue are NOVOLIPETSK STEEL and MAGNITOGORSK IRON & STEEL WORKS.

NLMK Group is the leading international manufacturer of high quality steel products (including transformer steel) with vertically-integrated business model. Extraction of raw materials and steel production are concentrated in low-cost regions, manufacture of products is carried out in the vicinity of major customers in Russia, North America and EU countries. NLMK Group invariably demonstrates high financial stability. Despite the significant capital investment in large investment projects for the last 10 years, the company maintains rather low level of debt load. Since the launch of the plant in Kaluga, the company finished the stage of sustainable growth and concentrated on the improvement of the efficiency of all business processes, products quality and strengthening of its market positions.

OJSC MAGNITOGORSK IRON & STEEL WORKS is one of the world largest manufacturers of steel and takes the leading place among ferrous metallurgy enterprises of Russia. The company's assets in Russia include large metallurgical complex with full production cycle, starting from iron ore preparation to deep processing of ferrous metals. The plant produces wide range of metal products, a predominant share among which takes products with high added value.

In 2014 the group produced 13 mln tons of steel and 12,2 mln tons of commercial metal products.

All participants from the Top-10 list have the highest and high solvency index, that shows the ability of enterprises to meet their obligations in time and fully; the risk of unfulfillment is low.