After electric power supply to the works had been cut off, part of value-added tax in the amount of 204 million UAH (according to declaration for December 2014) was reimbursed to Zaporizhstal Integrated Iron and Steel Works. These funds were immediately transferred by the works in full to offset existing debt to public monopolies: Zaporizhoblenerho and National Joint-Stock Company Naftogaz of Ukraine. After appropriate financial arrangements Zaporizhoblenerho restored electric power supply to Zaporizhstal.
On the 29th of May key substation of Zaporizhstal was cut off from electricity. Technological breakdown and negative environmental consequences were avoided due to professional actions of the works specialists. Production situation was kept under control due to implementation of emergency measures by the technical services of the works.
“Thankfully, common sense triumphed, but we did not manage to avoid negative consequences. The works suffered process losses due to cut off of power supply. An integrated solution is needed for real economy: normalization of fiscal policy of the state, regular VAT refund, which will allow enterprises to pay for the consumed resources in good time. We fear that similar situation with lack of working capital owing to non-reimbursement of VAT will recur every month”, the Chief Executive Officer of Zaporizhstal Rostyslav Shurma stated.
Currently the state’s debt on VAT refund to Zaporizhstal constitutes 450 million UAH. (Ukrainian Metal)