FBK’s Managing Partner Boris Yatsenko Speaks at Minex Russia 2024
As part of his session dedicated to the current state and development prospects of the mining industry, Boris Yatsenko has highlighted the following trends:
- Continued refocus of exports of ferrous metals and coal from West to East in view of the increasing freight tariffs;
- Growing scope of exports of non-ferrous metals to China;
- Growing exports of precious metals and stones via Hong Kong;
- Domestic demand for Russian steel is expected to grow due to an increase in federal funding of the defence and construction industries;
- Steel demand is expected to stagnate amid a decline in property investment in China. At the same time, India may facilitate the growth of global steel demand in mid-term;
- Precious metals are re-exported to the EU and the USA via Hong Kong, UAE and Armenia.
Among the adverse factors affecting the development of the Russian mining, the expert names dependence on imported equipment, limited access to Western technologies and personnel shortages.
“At the same time, the Russian M&A market remains active. With the cost of capital rising due to tighter monetary policy and limited access to external capital markets, financing through Pre-IPOs or IPOs is becoming a new alternative source of investment for companies,” the expert says. “We see the demand for these tools among our clients as well. FBK's portfolio features multiple successful cases where we provide expert assessment of investment opportunities, analyse risks associated with projects, and help our clients make informed investment decisions.”