Mayors: Lack of raw materials has industrial cities

Мэры: Дефицит сырья бьет по промышленным городам

The mayors propose to raise the duties on exports of scrap metal

In 2015, exports of scrap amounted to a record 1.25 million tons.

In Ukraine there is extremely acute shortage of scrap, which has already led to negative consequences on the enterprises and in the economy. This is referred to in the letter from the mayors industrial Ukrainian cities of Zaporizhzhia and Mariupol in the address of heads of parliamentary factions, the head of the Committee on industrial policy and the speaker of the Verkhovna Rada, informs the channel 24.

“Due to the significant increase in the export of scrap metal has formed its deficit. The company lost about 850 thousand tons of scrap. Along with this, they would lose markets, reduced production volumes, resulting in decreased contributions to the budget, resulting in decreased incomes of the population”, – is spoken in the letter of the mayor of Zaporozhye Vladimir Buryak.

According to the information specified in the letter, Ukraine there is acute shortage of scrap metal, but the volume of export of this raw material from the country hit records. In 2015, exports of scrap amounted to a record 1.25 million tonnes, this year the Ministry of economic development and trade planned to repeat practically the indicator.

According to the mayors, this situation leads to the loss of Ukrainians of jobs, the deterioration of the competitiveness of the country and the state of the economy of Ukraine. Of mayors consider raising duties on exports of scrap metal, which includes bill No. 3868 (from 10 euros to 35 euros per tonne – ed.).

To save Steelworkers from loss of production, and the state from declining revenue, and most importantly the loss of thousands of jobs, maybe bill No. 3868 “On amendments to some laws of Ukraine concerning reduction of the deficit of scrap in the domestic market with the aim priority needs of defense industry and rebuilding infrastructure”. This bill, which was passed in first reading in March this year, offers three years to increase export duty on scrap metal to 35 euros per ton”, – said in a letter to the mayor of the city Vadim Boychenko

Zaporizhstal Ukraine may become an exporter of raw primitive

“To deprive the city of key enterprises of raw materials means to jeopardize the development of the steel industry and related industries. Amid the global economic crisis, growth of competition in foreign markets of steel, falling steel prices and a challenging internal socio-economic situation in Ukraine, the failure of bill No. 3868 may lead to catastrophic consequences in the economy, rising unemployment and growing social tensions in the city,” the letter said Buryak.

As reported the, Association of enterprises Metallurgprom believes that the optimal level of the export duty on scrap metal is the amount of 50 euros per ton.