To understand the impact of events in Donetsk and Lugansk on the Ukrainian coal industry, two main questions need to first be answered:
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In January-June Ukrainian companies exported 10.2 million tons of ferrous metals worth $4.2 billion, up by 26.7% and down by 42.1% YoY respectively.
The occupied territories face problems with fuel, machinery and railroad, said the Ministry for energy and coal ministry Vladimir Demchyshin.
In January-August Ukrainian companies exported 992.85 thousand tons of ferrous metals scrap worth $241.9 million, up by 56% or by 59% and by 10.6% or 22.7% YoY respectively.
The largest coke works in Europe – Avdiivka Coke and Chemical Works – could stop operating because of the lack of empty railroad cars.
Metinvest Group of Companies has applied to the Anti-monopoly committee of Ukraine asking for permission to purchase the Dneprodzerzhinsk By-product Coke Plant, owned by the Russia-based Evraz.
There is no political background in Antonov’s cooperation with Dneprospetsstal (DSS), main shareholders of which are Russian, said Ukroboronprom general director Roman Romanov.
Metinvest is negotiating with the so-called Donetsk People’s Republic about the work of its companies there and pays taxes to the separatists, said the Donetsk region military-civilian administration chairman Pavel Zhebrivsky.
In January-August Ukraine exported 577.55 thousand tons of ferroalloys worth $635.58 million, down by 9.8% and 19.3% YoY respectively.
By the end of September Ukraine would have received the first ships with coal from the South African Republic.
In January-August Ferrexpo-controlled Poltava and Yeristovo Mining and Processing Works (PGOK and EGOK) produced 7.65 million tons of pellets, up by 5.1% YoY.
Avdiivka Coke and Chemical Works, a part of the Metinvest Group, has put into operation its tar-distilling workshop.
In January-August Azovstal Iron and Steel Works (Donetsk region), a part of the Metinvest Group of Companies, produced 2.02 million tons of rolled metal, down by 10.1% YoY.