Additional financial burden on the MMC of Ukraine after the adoption of tariffs for distribution of natural gas will amount to 567 million hryvnia per year, which is more than two times higher than economically justified growth, said statement of enterprises "Ukrmetallurgprom".
December 24, 2019 was held a meeting of the Commission NKREKP, which adopted a Resolution on Increase of the tariff for distribution of natural gas. Of particular concern to the mining and metallurgical industry of Ukraine is the fact that, in accordance with the decision of NTRAK, tariffs for services of gas distribution systems to increase on average by 65 % (from 510 to 841 UAH per 1 thousand cubic meters).
According to "Ukrmetallurgprom" the tariff increase will have negative consequences for the mining industry, and the economy and national security of Ukraine in General.
"the Increase in costs of gas transportation in conditions of crisis in the global steel markets will lead to a further deterioration of the economic situation in the Ukrainian metallurgy and industry of Ukraine in General, an increase in losses and leaching of working capital and, as a consequence, reduction of volumes of production, investment and employment in the core and allied sectors of the domestic industrial complex ... Ukrainian industry offered NKREKU their understanding of the cost-based approach to the calculation of distribution tariff of gas, which, unfortunately, was completely ignored," said the Association.
According to "Ukrmetallurgprom", the Union has repeatedly offered to increase the price for transporting gas in two stages with the overall growth in the range of 30% from 510 to 665 UAH / cubic meter, which will improve the payroll distribution networks on the growth of the consumer price index in the years 2017-2020 (approximately +41%).
the Union said that today stopped the Dnieper metallurgical plant, a sintering plant of the southern mining suspended the work of the capacity Dneprovskiy metallurgical plant has reduced the production of "ArcelorMittal Kryvyi Rih", PJSC "Azovstal iron & steel works", on the verge of stopping other enterprises of mining-metallurgical complex of Ukraine.
in order to avoid a worsening crisis situation in Ukrainian mining and metals, and also to avoid negative consequences for other sectors of the economy and households of Ukraine, "Ukrmetallurgprom" appealed to the President and the Prime Minister of Ukraine with request to support the position of the Ukrainian mining and metallurgical complex concerning revision of the approved tariff for the gas distribution networks in the downside to an economically viable level (+30% compared to on 01.12.2019).
