Ukraine began to increase steel production and in January it almost doubled. But further growth is hampered not only by logistics, but also by the shortage of scrap, which Ukrzaliznytsia could cover.
This year, a decrease in scrap purchases is expected due to mined areas and mobilization. This deficit could be covered by state monopolies, which constantly write off obsolete equipment. The largest of them is Ukrzaliznytsia.
In 2022, the company sold 113 thousand tons of scrap for 670 million hryvnia, and in 2023 - 76 thousand tons for 460 million hryvnia. The last auctions took place in early September 2023.
Today, Ukrzaliznytsia is awaiting consideration by the Cabinet of Ministers of Ukraine of a new procedure for approving the alienation and lease of company property.
In September 2023, by government decree it was canceled the procedure by which the alienation of the company's property was carried out by decision of the board. Now the sale of property and lease, including the sale of scrap metal, must be approved by the Cabinet of Ministers. However, the new resolution does not determine the procedure for the government to approve such decisions.
In order to resolve this issue, Ukrzaliznytsia initiated changes to this resolution in December last year. They are already at the final stage and have been agreed upon with the Ministry of Development of Communities, Territories and Infrastructure, the State Property Fund, the National Agency for the Prevention of Corruption, the Ministry of Digital Transformation, the Ministry of Economy and the Ministry of Justice. Soon, changes to the resolution will be put to a government vote.
“Ukrzaliznytsia is interested in the speedy approval of changes to the procedure. It will allow the company to receive additional revenue from the sale of scrap metal and the transfer of space for rent,” the company said.
