Silicon factories shut down in Russia due to war - CCD

Silicon factories shut down in Russia due to war - CCD

Ukrinform
Due to Russia's war in Ukraine, the joint-stock company Kremniy, which is the largest producer of refined silicon in the Russian Federation, will completely halt production on January 1, 2026.

According to Ukrinform, this was reported by the Center for Countering Disinformation (CCD) at the National Security and Defense Council of Ukraine on Telegram.

"The joint-stock company Kremniy, Russia's largest producer of refined silicon, will completely halt production from January 1, 2026. The second similar enterprise, Kremniy Ural, will operate only at partial capacity. Both enterprises are part of the sanctioned company Rusal,“ the report says.

As noted, the formal reason is allegedly ”global overproduction" and dumping prices from foreign suppliers. But the complaints about dumping seem unconvincing. If foreign manufacturers can sell silicon cheaper and still not operate at a loss, then the problem lies in Russia's inability to create competitive production conditions. After 2022, Russia refocused on the military economy, which sharply worsened the situation in the civilian and high-tech sectors.

Read also: Ryazan oil refinery attacked again — CCD

The Center explained that refined silicon is a key material for microelectronics, the chemical industry, solar panels, and many technological processes. The fact that Russia's only two plants in this field cannot compete in the global market is a marker of the deep systemic degradation of Russian industry.

As reported by Ukrinform, the freight transport market in Russia is experiencing its worst crisis in 17 years. Nearly 6,700 transport companies are already in the process of bankruptcy or liquidation.

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