“Iron and Steel Producers Operate at No More than 15% of Their Capacity, but the Government Can Help Survive the Crisis,” Chair of the Board of the Federation of Metallurgists of Ukraine
Iron and steel producers operate at no more than 15%, and iron ore producers – at most – at 25% of their capacity. Sergii Bilenkyi, Chair of the Board of the Federation of Metallurgists of Ukraine, disclosed this fact during his briefing at Media Center Ukraine.
“This operation does not even cover the variable expenses in most cases,” Sergii Bilenkyi added.
The logistical expenses have grown 3 to 5-fold since the start of the all-out war. The major problem is the blockade of product exports by sea. The Chair of the Board of the Federation of Metallurgists of Ukraine also explained how the government could support the industry now.
“In my opinion, the railway tariffs must be reduced substantially, especially because they were greatly increased recently. The rent and environmental taxes should be canceled altogether or suspended, so to say, for the duration of the war and, perhaps, some transition period to enable the producers to restore their production potential. We are also worried about the electric power transmission tariff. It also went up significantly. If the government worked in these sectors and intensified negotiations on the resumption of exports by sea, we could arrive at some plan, I believe,” Sergii Bilenkyi stated.
Read more: https://mediacenter.org.ua/news