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24 February 2025

Severstal Faces Legislative Challenges Amid Migrant Labor Update

Sergei Zhestannikov pushes for resolutions as Severstal prepares for extensive construction plans

Severstal's business updates have come to the forefront as discussions about migrant labor and operational expansion intensify. Recently, Sergei Zhestannikov, the head of the Legislative Assembly, met with Severstal representatives to discuss plans for large-scale construction projects which will require migrant workers. This meeting marked the first time Severstal has had to address questions from regional authorities about its labor policy.

Zhestannikov stated, "The issue of migrants heading to Cherepovets for extensive construction projects must be resolved quickly, including at the legislative level." He pointed out the lack of clarity from Severstal on how many migrants would be attracted to the area, noting the company's vague responses. He highlighted the benefits being proposed for foreign workers, including salaries ranging from 70,000 to 80,000 rubles, annual patent coverage, medical check-ups, language exams, and living facilities complete with sports amenities. Yet, Zhestannikov raised the question, "Why don’t residents of the city and region deserve similar unique conditions?"

The governor, Georgiy Filimonov, has also mentioned tightening control over migrant workers, prompted by local residents' concerns, indicating potential changes to regional legislation to manage migrant numbers and restrict the types of activities they can engage in.

Meanwhile, Severstal's sports involvement continues to play out on the ice, as recently demonstrated by their hockey team’s performance. On February 24, the Severstal team faced off against Metallurg Magnitogorsk, losing decisively with a score of 4-1. This outcome was significant, marking the end of their recent three-match road series with only four points earned. Although the team struggled during the match, they showcased moments of resilience. Davit Dumbadze scored for Severstal, momentarily tying the game at one goal each before Metallurg surged back to secure the win.

Despite losing, the game emphasized the growing respect for Severstal within the KHL as teams are now playing strategically against them, fearing their potential. This respect reflects the company’s broader reputation beyond its corporate identity.

Critics of the company raised concerns during the recent meeting about the absence of recruitment efforts targeting local workers, especially amid the acute demands for labor during the upcoming industrial projects. Representatives from Severstal indicated the migrant accommodation would only commence by April 2025, leaving the status of incoming workers during the interim open to questions of ethics and practicality.

Zhestannikov’s comments were stark as he pushed for immediate legislative action to address the migrant issue, emphasizing the moral obligation to prioritize local employment. Severstal’s future projects must align with local labor needs rather than exclusively recruiting overseas workers.

On the sports front, Severstal's loss to Metallurg highlights the competitive nature of the KHL, as they currently sit third place on the Western Conference table with 73 points. Despite the setback, Severstal’s team remains poised to improve as they prepare for their upcoming match against Torpedo Nizhny Novgorod.

The synergy between Severstal's industrial operations and sports presence creates dual narratives within the community, compelling citizens and stakeholders to remain engaged with both aspects of the company's influence. Managing these parallel narratives will be key for Severstal as it navigates questions of labor, ethics, and performance on the ice.

While Severstal grapples with the pressing need for effective labor policies and local engagement, its sports team adds another layer of identity, fostering community spirit and loyalty. The upcoming weeks will be pivotal for Severstal, as they work to address governmental expectations and develop their industrial capabilities alongside their sports franchise.