It is reported that the debts for VAT reimbursements to steelmakers continue to grow in Ukraine reaching a record amount of UAH4.5 billion as of April 1st. The Ukrainian Federation of Metallurgists has stated that “The inequality of VAT refunding during all the past years is very alarming.”
As per report, of the total debt of UAH4.5 billion, the Ukrainian state owes UAH1.8 billion to ArcelorMittal Kriviy Rih and UAH1.2 billion to Mariupol Ilyich Iron and Steel Works – i.e. the debts to these two companies amount to 66% of the total debt. Meanwhile, the state owes UAH153 million in VAT refunds to Metinvest Holding and UAH355 million to Industrial Union of Donbass.
Mr. Vladimir Boyko, CEO of Ilyich, said “The VAT refund issue threatens the stability of Ilyich operations. We intend to send a telegram to the prime minister and the president to again inform them about the difficult situation at the Ilyich mill and the necessity for the return of VAT every month.”
The total debts for VAT reimbursements in Ukraine amount to more than UAH28 billion. (SteelOrbis)