Global Value Added Chains in Ferrous Metallurgy: Russian Participation

DOI: 10.20542/0131-2227-2018-62-8-97-103

A. Chetverikova (,
Primakov National Research Institute of World Economy and International Relations, Russian Academy of Sciences (IMEMO), 23, Profsoyuznaya Str., Moscow, 117997, Russian Federation 

Acknowledgements. The article was prepared at the Primakov National Research Institute of World Economy and International Relations, Russian Academy of Sciences and supported by a grant from the Russian Science Foundation (project no. 14-28-00097 “The optimization of Russian external investment ties in the conditions of deteriorating relations with the EU”).

Abstract. The article is devoted to the analysis of Russian participation in global value chains (GVCs). The author gives a qualitative and quantitative description of the Russian positions in the GVCs, pointing out their imbalance and primitiveness. Special attention is paid to the Russian TNCs’ positions in the global value chains. The article highlights the distinguishing features of their involvement in global value chains, in particular its “regionality”. It is concluded that the Russian companies are guided by the global value chains. In a sectoral context, metallurgy is one of Russian sectors most involved in the global value chains. An increased share of foreign value added in the total exports of Russian metallurgy is singled out as a distinctive feature. Further on, the author analyzes differences of the models of particular Russian ferrous metallurgy TNCs’ policies concerning participation in the global value chains. The examples of such companies as Novolipetskii metallurgicheskii kombinat (NLMC) and Magnitogorskii metallurgicheskii kombinat (MMK) are given. The author makes an attempt to describe the scale and nature of the existing intra-corporate flows of the Russian ferrous metallurgy companies within the global value chains. The description is given of the geographical breakdown of foreign activities of the largest Russian metallurgical companies within the framework of GVCs. The author comes to a conclusion that nowadays the Russian participation in the global value chains in general and in ferrous metallurgy in particular doesn’t correspond to the strategic interests of the nation. It is noted that despite the attempts of Russian ferrous metallurgy TNCs, which largely determined Russian participation in global value chains of this sector, there is a necessity to improve the quality of this participation. 

Keywords: global value chains, ferrous metallurgy, Russia, TNC 


1. Smorodinskaya N.V., Malygin V.E., Katukov D.D. Setevoe ustroistvo global’nykh stoimostnykh tsepochek i spetsifika uchastiya natsional’nykh ekonomik [The network structure of global value chains and specificity of countries’ participation in them]. Obshchestvennye nauki i sovremennost’, 2017, no. 3, рр. 55-68.

2. Morrison A., Pietrobelli C., Rabellotti R. Global Value Chains and Technological Capabilities: a Framework to Study Learning and Innovation in Developing Countries. Oxford Development Studies, 2008, vol. 36, no. 1. pp. 39-58.

3. Varnavskii V.G. Mezhdunarodnaya torgovlya v kategoriyakh dobavlennoi stoimosti: voprosy metodologii [International trade in value added terms: methodological issues]. Mirovaya ekonomika i mezhdunarodnye otnosheniya, 2018, vol. 62, no. 1, рр. 5-15. DOI:10.20542/0131-2227-2018-62-1-5-15

4. Inomata S. Analytical Frameworks for Global Value Chains: an Overview. Global Value Chain Development Report 2017. Washington, The World Bank Group, 2017, pp. 15-35.

5. WTO. Trade in Value-Added and Global Value Chains: Statistical Profiles. Available at: (accessed 11.01.2018).

6. Obolenskiy V.P., ed. Vneshneekonomicheskie svyazi Rossii: sovremennye vyzovy i vozmozhnye otvety [Foreign economic relations of Russia: current challenges and possible answers]. Moscow, Institute of Economics RAS, 2016. 296 p.

7. OECD. Global Value Chains (GVCs): Russian Federation. Available at: (accessed 10.11.2017).

8. Consequences of global value chains for trade, investments, development and employment. OECD, WTO, UNCTAD. 2013. 34 p. (In Russ.) Available at: (accessed 13.12.2017).

9. Luk’yanov S., Drapkin I. Global’nye tsepochki sozdaniya stoimosti: effekty dlya integriruyushchei ekonomiki [Global value chains: effects for integrating economy]. Mirovaya ekonomika i mezhdunarodnye otnosheniya, 2017, vol. 61, no. 4, pp. 16-25. DOI:10.20542/0131-2227-2017-61-4-16-25

10. Interconnected Economies: Benefiting from Global Value Chains. OECD. Synthesis report. 2013. 54 p. Available at: (accessed 13.12.2017).

11. Meshkova T., Moiseichev E. Analiz global’nykh tsepochek sozdaniya stoimosti: vozmozhnosti forsait-issledovanii [Foresight applications to the analysis of global value chains]. Foresight and STI Governance, 2016, vol. 10, no.1, pp. 69-82.

12. World Investment Report 2013. Global Value Chains: Investment and Trade for Development. UNCTAD. 2013. 236 p. Available at: (accessed 20.12.2017).

13. Kukushkina Yu.M. Global’nye tsepochki sozdaniya stoimosti i korporativnye interesy transnatsional’nykh korporatsii [Global value chains and corporate interests of transnational corporations]. Journal of Modern Competition, 2016, vol. 10, no. 2 (56), pp. 107-117.

14. Kuznetsov A.V. Zarubezhnye investitsii rossiiskikh kompanii: konkurentsiya s zapadnoevropeiskimi i vostochnoaziatskimi TNK [Foreign investments of Russian companies: competition with West European and East Asian TNCs]. Vestnik Rossiiskoi akademii nauk, 2016, vol. 86, no. 3, pp. 203-214.

15. Dement’ev V.E., Novikova E.S., Ustyuzheva A.E. Mesto Rossii v global’nykh tsepochkakh sozdaniya stoimosti [Russia’s place in global value chains]. Natsional’nye interesy: prioritety i bezopasnost’, 2016, no. 1(334), pp. 17-30.

16. Stivenson Sh. Global’nye tsepochki sozdaniya stoimosti: novaya real’nost’ mezhdunarodnoi torgovli [Global value added chains: new reality of international trade] Available at:мосты/news/глобальные-цепочки-создания-стоимости-новая-реальность-международной (accessed 28.11.2017).

17. Ponomarenko A.N., Muradov K.Yu. Novaya statistika dvizheniya dobavlennoi stoimosti v mezhdunarodnoi torgovle [New statistics of international trade in value added terms]. Ekonomicheskii zhurnal VShE, 2014, no. 1, pp. 43-79.

18. Kondrat’ev V.B., ed. Resursnaya model’ modernizatsii ekonomiki: vozmozhnosti i ogranicheniya [Resources-based modernization model: opportunities and constraints]. Moscow, IMEMO, 2016. 326 p.

19. Chetverikova A.S. Vzaimnye pryamye investitsii Rossii i ES v metallurgii [Mutual direct investments of Russia and EU in metallurgy]. Mirovaya ekonomika i mezhdunarodnye otnosheniya, 2015, vol. 59, no. 4. pp. 49-57.

20. Kondrat’ev V.B. Global’nye tsepochki dobavlennoi stoimosti v mirovoi ekonomike [Global value-added chains in the world economy]. Geografiya mirovogo razvitiya [Geography of world development]. Sintzerov L.M., ed. Moscow, OOO Tovarishchestvo nauchnykh izdanii KMK, 2016, pp. 132-147.

21. International Standard Industrial Classification of All Economic Activities, Rev. 3. Available at: https://unstats. (accessed 28.11.2017).

22. TiVA OECD (2017). Available at: (accessed 28.11.2017).

23. Avdasheva S.B., Budanov I.A., Golikova V.V., Yakovlev A.A. Modernizatsiya rossiiskikh predpriyatii v tsepochkakh sozdaniya stoimosti (na primere trubnoi i mebel’noi promyshlennosti RF) [Modernization of Russian enterprises in value added chains (for example of pipe and furniture industry of Russia)]. Ekonomicheskii zhurnal VShE, 2005, no. 3. pp. 361-377.

24. World Steel Association. Top Steel-Producing Companies (2016). Available at: (accessed 13.12.2017).

25. Forbes Global 2000. The World’s Biggest Public Companies (2017). Available at: (accessed 13.12.2017).

26. Federal state statistics service. External trade of the Russian Federation (data of Federal Customs Service), export of selected goods (2016) (In Russ.) Available at: (accessed 13.12.2017). 

Registered in System SCIENCE INDEX

For citation:
Chetverikova A. Global Value Added Chains in Ferrous Metallurgy: Russian Participation. World Eсonomy and International Relations, 2018, vol. 62, no. 8, pp. 97-103.

Comments (0)

No comments

Add comment






Dear authors! Please note that in the VAK List of peer-reviewed scientific journals, in which the main scientific results of dissertations for the degree of candidate and doctor of sciences should be published for the “MEMO Journal” the following specialties are recorded:
economic sciences:
5.2.5. World Economy.
5.2.1. Economic Theory
5.2.3. Regional and Branch Economics
political sciences:
5.5.4. International Relations
5.5.1. History and Theory of Politics
5.5.2. Political Institutions, Processes, Technologies


Current Issue
2024, vol. 68, No. 6
Topical Themes of the Issue:
  • The “Pivot to Asia”: AUKUS in the Perception of American Politicum
  • The Collapse of the European Collective Security System
  • Public Investment and Sustainability of World Economy
  • Sub-Saharan Africa: Trends, Proportions and Factors of Development
Submit an Article
The Editorial Board invites authors to write analytical articles on the following topics:
  • changes in the processes of globalization in modern conditions
  • formation of the new world order
  • shifts in civilization at the stage of transition to a digital society

The editors are also interested in publishing synthesis articles / scientific reviews revealing the main trends in the development of certain regions of the world - Latin America, Africa, South Asia, etc.