According to Mr Rafkat Takhautdinov Vice President of MMK his company will slash its capital expenditures for the fourth quarter by 40%.

He said that the market will stabilize not earlier than the second quarter of 2009."

Mr Takhautdinov believed that the impact of the crisis would be overcome by 2013.

Mr Takhautdinov said that "Only state investment can revive the construction and infrastructure projects. Even the market's quick recovery will be hampered by the stockpiles of metal kept in warehouses."

Several of the country's largest metals companies have proposed that the government introduce customs duties on several metal products to reduce imports and speed up the payment of refunds on the value added tax charged on exports. The firms also asked for state guarantees on loans earmarked for Russian made equipment and for the term of the loans to be extended.