Ukraine extends MoU with mining and metallurgical companies

It is reported that the Ukrainian cabinet of ministers has prolonged until the end of 2009 the MoU with the country’s mining and metallurgical companies, stipulating that the benefits will be granted if the companies reduce their prices for the domestic market to levels not higher than their export prices.
According to the cabinet of ministers decision No 935 dated July 22nd 2009, among the other conditions for granting of benefits is the absence of debts to the budget to Ukraine pension fund to Ukraine state gas company Naftogaz and payment of wages.
In November 2008 the Ukraine government and the country mining and metallurgical companies signed an MoU aimed at the minimization of the consequences of the economic crisis in the industry in particular at the stabilization of prices for ore, coal and steel products, the maintenance of jobs, salary levels and other social securities for employees and also the development of the Ukrainian domestic market.
Within the framework of the MoU, the Ukrainian cabinet of ministers by its decision No 925, dated October 14th 2008, granted benefits for the domestic chemical as well as mining and metallurgical companies, i.e. imposed a moratorium on the increase of railway transportation and electricity supply tariffs. Initially, the decision was effective until January 1st 2009, but after a series of prolongations was extended until October 1st 2009. The MoU expired on January 1st 2009 however, the tax benefits continued to be granted to the country’s mining and metallurgical companies. (SteelOrbis)