The Ukrainian Metal

Preferences for steel manufacturers extended in Ukraine

It is reported that the Ukrainian Government has extended the effect of the Memorandum on Mutual Understanding with steel and iron ore mining manufacturers through the end of 2010. This document has been approved at the meeting of the Cabinet of Ministers recently.
As per report, this Memorandum was signed by owners of steel and iron ore mining companies in November 2008 and includes a moratorium on raising gas, electricity and railway tariffs for steel and iron ore manufacturers.
According to Millennium Capital analyst, “This news is undoubtedly positive for steel and iron ore makers because with the help of this Memorandum they may maintain their competitiveness in these hard times. But, on the other hand, it is negative for electricity manufacturers and railway companies as well as for other companies who might gain from raising the tariffs. But the metallurgy is the source of hard currency inflow in the country and the interests of all others take the back seat now.” (Millennium Capital)

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