Growing Anger In Russia As Recession Deepens, In Chelyabinsk, unemployment is soaring.

http://news.sky.com/skynews/Home/World-News/Russian-Economic-Crisis-Protests-Grow-As-Russia-Plunges-Into-Recession-And-Workers-Lose-Their-Jobs/Article/200902315223765?lpos=World_News_First_Buisness_Article_Teaser_Region_5&lid=ARTICLE_15223765_Russian_Economic_Crisis%3A_Protests_Grow_As_Russia_Plunges_Into_Recession_And_Workers_Lose_Their_Jobs

In Chelyabinsk, a city in the Urals built around the metals industry, unemployment is soaring.

Inside the massive Mechel steel factory, one of the biggest in Russia, they have had to cut production.

Some 70% of the steel it produces is exported around the world to markets in America, Europe and Africa.

But as those economies sink deeper into recession the orders have been drying up.

The plant's managing director, Sergey Malashev, told Sky News everybody is worrying about how bad the crisis will get.

The authorities' position is very clear - don't talk about the scale of the crisis in the media, everything is ok.

Political campaigner Stanislav Maltsev

"We produced 360,000 tonnes of output per month on average but in the crisis months this came down to 290,000 tonnes - up to a 25% reduction," he said.

But he added: "This is not the worst result other metal plants in Russia saw their output go down by 50 or 60%."

The Mechel plant has not had to make any staff redundant but other workers in Chelyabinsk have not been so lucky.

Thousands have been laid off in the last few months and the prospect of finding new jobs is not good.

A weary Oleg Kuznetsov told us: "I am brick layer, out of work. My friends who still have work have their working hours and pay slashed in half, others are on unpaid leave. Almost everyone I know has been affected."

Roman Abramovich: Still mega rich

Just eight months ago when oil prices were at a record high, it seemed to many Russians the good times would last forever.

But the economy - once one of the fastest growing in the world - is now hurtling into recession.

The problems the country faces are enormous, partly because it failed to diversify in the boom times.

Its dependence on receipts from the export of oil and gas has given rise to a hugely unbalanced economy.

Some claim the cracks are now appearing in Prime Minister Vladimir Putin's empire with some people now openly questioning his leadership.

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GEORGE LESSARD
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