Bloomberg reported that OAO Magnitogorsk Iron & Steel suspended most investment programs because of the global financial crisis.

OAO Magnitogorsk said the two priority projects to be launched in 2009, a plate mill and a color coating line, will still be completed.

Mr Viktor Rashnikov Chairman of OAO Magnitogorsk said in the statement that Magnitogorsk has developed a program to cut costs, boost liquidity and reduce stocks and overdue payments in the fourth quarter. Magnitogorsk has lived through times worse than this and will overcome the situation.

Moscow-based Alfa Bank said Russia's six largest steel companies, including Magnitogorsk, had planned to invest more than USD 26 billion through 2012 until the global financial crisis eroded demand and sparked a collapse in Russian stocks. Domestic steelmakers may now cut production by as much as 20% to support prices.