Ukrainian mining and processing works are in difficult situation, said the Metinvest Group CEO Yuri Ryzhenkov.
He added there were both subjective and objective reasons for this. One of the main factors, in his opinion, is the military conflict in the East of Ukraine, where the main consumers of the Krivoy Rog mining and processing works are located.
“All those infrastructure damages, that we have seen in the year and a half, are greatly affecting the companies’ operation”, he stressed.
The second major factor was the fiscal policy of the state. As an example Ryzhenkov named the ore mining rent that has gone up 18 times for the last 18 months.
“While on the foreign markets ore price has fallen 3 times”, noted Ryzhenkov.
Another bad factor is the problems with VAT reimbursement.
“And, of course, the prices of natural monopolies – railroad transportation, gas and electricity supplies, with tariffs increasing a couple of times for the past year and a half”, said Metinvest CEO. (Ukrainian metal)