Director of the steel plant urged Poroshenko to sign law on export duty

The Ukrainian budget and the metallurgical industry required the introduction of the law on increase of export duties, adopted by the Verkhovna Rada. At the moment the document is awaiting signature of the President of Ukraine. This is stated in the address to Petro Poroshenko from the heads of major domestic steel enterprises, says channel 24.

“Today, to save not only our company, but also the national steel industry – the largest employer and taxpayer in the state budget, we ask You, dear Pyotr Alexeyevich, to sign this law, which would restrain exports of strategic raw materials and would help to reorient the volumes for the domestic industry”, — said in a letter to the Director of Ilyich iron and steel works Yuriy Zinchenko.

Despite the acute shortage of scrap metal at Ukrainian refineries, Ukraine exported the record volumes of scrap, which is a very destructive tactic. In 2015 the export of scrap from the country broke the record and reached by over 1.2 million tons. This year the Ministry of economic development and trade is planning almost to repeat the record and to export 1.1 million tons of strategic raw materials.

The law of Ukraine “On amendments to some laws of Ukraine concerning reduction of the deficit of ferrous scrap in the domestic market in order of priority the needs of defense industry and recovery infrastructure” envisages an increase in duties on export of scrap metal from the country from 10 to 30 euros per ton.

As pointed out by the Directors of enterprises, the adoption of the law will keep tax revenues in the budget of Ukraine, the jobs, the viability of related industries and foreign exchange earnings to the country.

“Against the backdrop of the catastrophic shortage of scrap in the domestic market of Ukraine steelmakers were forced to restrain production of finished products, endangering not only financial and economic indicators of the enterprise, as the future of their workers and workers in related industries,” — writes in his letter, the Director of “Azovstal” Enver Tskitishvili.

“The increase in the level of export duties to 30 euros per ton of scrap metal under this bill, will allow to provide the domestic market of Ukraine scarce raw materials. This will increase metal production, save jobs and revenues to the state budget of Ukraine”, — stated in the letter from the Director of “Zaporizhstal” Rostislav Shurma.