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The mining and metallurgical complex of Ukraine requires more than $ 10 billion in environmental investments

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This amount of investment is required for minimum compliance with the environmental regulations of the European Union, which is increasingly focusing on clean production at the importer.

The mining and metallurgical complex of Ukraine requires more than $ 10 billion in environmental investments

The Ukrainian mining and metallurgical complex (MMC) is experiencing a significant capital shortage. This was stated by MP Musa Magomedov. “The situation is aggravated by the fact that the new EU environmental policy dictates high requirements for the environmental modernization of production. Therefore, in 2021, metallurgists need to return the positive dynamics of capital investments, ”he said.

The People's Deputy recalled that in 2020 the level of capital investments in the Ukrainian mining and metallurgical complex decreased by 28.1%, compared to 2019, to $ 1.37 billion. In the metallurgy segment, investments fell by 40.8%, to $ 640.2 million, in mining - by 11.8%, to $ 734 million. Private investment by the largest companies in the industry fell 35.5% to $ 1.07 billion.

“One cannot count on the help of the state. There is no money in the budget to help industry. The temporary suspension of cooperation with the IMF has exacerbated the already difficult problem of covering the budget deficit. The country's investment attractiveness is also not up to par. Violation by Ukraine of its obligations in the situation with green energy does not add confidence to investors, "the politician said.

Magomedov also drew attention to the fact that the investment plans of Ukrainian mining and metallurgical companies indicate that in the near future they do not count on serious government assistance. Thus, Rinat Akhmetov's Metinvest group planned to attract $ 800-850 million in capital investments in 2021, which is 20-30% more than last year. Ferrexpo plans to increase its investment by 50% to $ 300 million. The company also announced its intention to invest $ 2 billion in pellet production by 2030.

According to the investment plans of the Interpipe company, by the end of 2022, 136 million dollars will be allocated for the development of production. ArcelorMittal Kryvyi Rih plans to invest more than $ 600 million in the development of the company in 2021-2023, plus investments in environmental modernization will amount to about $ 1 billion.

“Given the ongoing economic crisis, the figures for private investment by domestic companies are impressive. However, the need for investment is much higher. Ukraine's obligations under the Second Nationally Determined Contribution and overcoming the new EU carbon duty called SVAM will require at least $ 10 billion in investment from MMC, ”Magomedov said.

The politician expressed confidence that the Ukrainian metallurgists cannot do without the help of the state.

“The first thing that needs to be done is to create a state decarbonization fund, from which projects on environmental modernization will be co-financed jointly with private companies. The Fund can be replenished at the expense of 50% of the deductions from the emission tax. Thus, the industry will receive an investment resource, "the MP emphasizes.

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