Kazakhstan’s largest iron ore-enricher has cut supplies to a major steelworks in Siberia as the repercussions of international sanctions against Russia disrupt economic ties between these two members of the Eurasian Economic Union, a free-trade zone. The Sokolov-Sarybai Mining Production Association in northern Kazakhstan was the main supplier of ore to the Magnitogorsk Iron and Steelworks until Russia invaded Ukraine.
Known by the acronym SSGPO, the Kazakhstani plant, based in Rudniy, was supplying 70 percent of the ore sourced by the steelworks in Magnitogorsk, which lies just 340 kilometers away. The Russian plant, often shortened to MMK, obtained the rest from suppliers in Russia.
Because of the halt in supplies from Kazakhstan, MMK has been forced to source ore from nearly 2,000 kilometers away, Russia’s Vedomosti newspaper reported on May 17, citing anonymous sources from both companies.