The Mariupol Ilyich Iron and Steel Works will have additional expenses of 700 million UAH following the increase of railroad tariffs, and 10% of its products will become profitless, the company CEO Yuri Zinchenko said.
“In case of another tariff increase 10% of our 2017 orders will automatically become profitless. Why? Because the prime cost of pig iron will increase by $3 per ton, and that of metal products – by $5 per ton”, he said.
According to him, because of the loss of 10% of orders at the works Ukrzaliznytsia will lose 1.4 million tons of cargo that it could have transported.
“That’s $20 million only from our company. For the state this is the loss of $147 million of taxable revenues”, he added.
He also pointed out that there was a hidden increase of 15% (up to 40%) in the Ministry of Infrastructure draft as a compensation for the transportation on the empty cars. (Ukrainian metal)