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#VSMPO-AVISMA copes with currency fluctuations

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March 13 2015

Mikhail Voevodin, VSMPO-AVISMA CEO, analyzed the situation with leaps in foreign currency and their impact on the Corporation’s economic health. He considers the increase in dollar and euro rate to be negative for VSMPO-AVISMA, but not critical.

According to Mikhail Voevodin, the current economic situation has its own pros and cons. “On the one hand, it’s favorable for us: almost 60% of our products are exported. On the other hand, up to 70% of our investment program is based on the procurement of equipment under the contracts which value is calculated in dollars and euros. Therefore, when effecting payments under such contracts, the impact on our economic health is very painful,” he said.

He noted that the economic health of VSMPO-AVISMA is also affected by inflation, which is partly caused by stronger dollar and euro. He believes that inflation causes the Russian contractors, suppliers of equipment components and raw materials to raise prices.

Nevertheless, according to the Corporation’s CEO, stronger dollar and euro is not critical for VSMPO-AVISMA.

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