Magnitogorsk Iron & Steel Works BOD Chairman Viktor Rashnikov has recently been interviewed by The Financial Times; the executive said MMK was intent on the realization of great strategic goals rather than mere money-making. Rashnikov believes the success of the Russian metallurgical enterprises largely depends on their controlling shareholders’ strategic vision.

‘The American and European companies are rather transparent to the public, they’ve got plenty of financial investors, and they mainly aim to buy and sell, whereas Russian businesses tend to be controlled by strategic investors and often have a more professional approach to development and long-term policies,’ he explained.

Viktor Rashnikov spoke a bit about the issue of raw materials the metallurgical sector needs. He said MMK took the problem very seriously and the company was hoping to cope with it quite soon through the enterprise’s large-scale projects like the construction of Prioskolskiy ore mining and processing enterprise, for instance, and their strategic alliance with Belon, the coal company.

As for the enterprise’s personnel policy, Rashnikov explained that, unlike many other large Russian businesses, they were not going to invite any foreign executives to run the company. The overwhelming majority of MMK’s top managers come from Magnitogorsk; they are also the country’s best specialized colleges’ graduates.

‘They feel closely interconnected, which means they will stick together no matter what,’ Rashnikov said.