Cemros, which controls around one third of Russia’s cement market, has frozen production at plants in Belgorod and Ulyanovsk oblasts and reduced operations at its Lipetsk facility to a skeleton level, as demand across the construction sector collapses. In Ulyanovsk, cement demand is described as “virtually nonexistent,” while Belgorod recorded a 13–15 per cent YoY decline.
The company attributes part of the downturn to cheaper imports from Belarus and Iran, which have undercut domestic producers. According to industry body Soyuzcement, Belarus accounts for 69 per cent of Russian cement imports and Iran a further 20 per cent, prompting calls for five-year anti-dumping measures. However, imports are only one element of a broader crisis.
Mortgage rates approaching 30 per cent have effectively shut most Russians out of the housing market, while the Central Bank’s benchmark interest rate, held at 16 per cent to curb inflation driven by military spending, continues to squeeze developers. Deputy Prime Minister Marat Khusnullin warned in August that nearly one in five construction companies faces bankruptcy, a figure that could rise above 30 per cent if conditions fail to improve.
In October, Cemros placed its 13,000 employees across 18 plants on a four-day work week to preserve jobs. Just months later, full plant shutdowns have followed. The company now expects Russian cement consumption to fall below 60Mta this year, a level last seen during the pandemic.
