Metallurgists suggested Groisman to convene an urgent meeting on MMC

Representatives of enterprises of mining-metallurgical complex of Ukraine took the initiative to convene soon a meeting to discuss the existing problems of the industry and early achievements of the stabilization Program and ensure long-term competitiveness of the MMC of Ukraine. This is stated in the letter from the President of the Association “Metallurgprom” Alexander Kalenkova and the head of the Association “Federation of metallurgists of Ukraine” Sergey Belenkiy reports

The Steelworkers appealed to Prime Minister Vladimir Groisman. In the meeting, in their opinion, should take part Plenipotentiary representatives of metallurgical and mining enterprises of Ukraine, representatives of relevant ministries, industry associations.

Among the issues that require discussion and decisions, metallurgists allocate state tariff regulation, in particular, initiated by the Ministry of infrastructure indexation of railway freight tariffs by 15%, the provision of preferences to producers of iron ore from Russia in the form of reductions in transit tariffs in Ukraine at the level of 15-25%, the cost of transporting gas to industrial consumers of Ukraine ($23,5-27,5/thousand cubic meters), which is significantly higher than the European average ($10-12 per thousand cubic meters), the level of port charges.

Also problematic is the tax regulation (termination of benefits in the form factor of 0.25 to the tax on land plots that are in use by the mining industry, and also the termination of VAT refund to enterprises that reregistered with uncontrolled controlled Ukraine territory). There are also problems with rail connections in Ukraine, trade policy, scarcity of scrap in the domestic market and the reduction of domestic consumption of the metal.

“The reserves of domestic GMK limited to – the volume of steel production in Ukraine in 2015 amounted to only 70% of the production level in 2011; according to the SSC net loss of metallurgical enterprises in January-September 2015 amounted to 22.4 billion (In 2014 – 41.9 billion). Continuing the haphazard regulation of the economy and ignoring the existing problems in MMC will lead to a gradual destruction of this one of the key sectors of the domestic industry will be extremely negative social and economic consequences for the country as a whole”, – is told in the message.