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Mining and metallurgical complex of Ukraine were against the introduction of duties on Russian diesel fuel

Ukraine

Ukrainian consumers will lose 13 billion hryvnia in case of introduction of import duties on diesel fuel and liquefied gas from Russia and other countries.

Mining and metallurgical complex of Ukraine were against the introduction of duties on Russian diesel fuel
Фото: Президент ОП «Укрметаллургпром» Александр Каленков / Интернет-журнал Металл

According to preliminary estimates, in the case of the introduction of import duties on diesel fuel and liquefied gas, mining and metallurgical complex of Ukraine will lose about UAH 300 million as a result of the increased cost of fuel, and the increase in the cost of related services and materials, the cost of which depends on fuel prices. This is stated in the open letter the President OP "Ukrmetallurgprom" Alexander Kalenkova and the President of the Federation of metallurgists of Ukraine Sergey Belenky to the Prime Minister of Ukraine Alexey Goncharuk and Minister of economic development, trade and agriculture of Ukraine Timofey Milovanov.

concern of metallurgists was filed in January of the current year PJSC "Ukrtatnafta" and JSC "Ukrgasdobycha" an appeal to the Ministry of economic development, trade and agriculture of Ukraine is a statement about a special anticoncezionale investigation concerning import to Ukraine of diesel fuel and liquefied gas, in particular, from Russia, with the aim of introducing the relevant import duties.

"today, the domestic mining and metallurgical complex is one of the largest consumers of the mentioned products – so, its share in national consumption of diesel fuel is about 6-7%, the costs of which are an integral part of the cost of steel products. In this case, the MMC of Ukraine provides almost 30% of foreign exchange earnings, 12% of GDP, more than 700 thousand jobs (including related industries), and about 15 billion UAH of payments to the budgets of all levels". the letter says representatives of the Ukrainian MMC.

According to the signatories, statistics from public sources indicates the absence of any reason to start anticoncezionale investigation concerning import of diesel fuel and liquefied natural gas to Ukraine.

"the Introduction of import duties on petroleum products will have a negative impact on the welfare of the population of Ukraine, as it will contribute to a significant increase in prices on the domestic market of Ukraine and will lead to increased costs consumers almost 13 billion hryvnia, which, in turn, will have negative financial and social consequences and impact on national security of Ukraine", - said in the letter.

Given that recently the situation in the MMC of Ukraine is much more complicated as a result of a significant deterioration in the pricing environment of increased protectionism and competition in the global steel market and rising production costs because of the unreasonable increase of tariffs, increase of rent, etc., in order to avoid the deepening crisis in the national mining and metallurgical complex and deterioration of the social living standards of the population of Ukraine Ukrainian steelmakers appealed to the country leaders with the request to support their position and to prevent any investigation concerning import to Ukraine of diesel fuel and liquefied gas.

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