Metallurgical lobby of Ukraine requires the government to ensure transshipment of ore ports
business combinations "Ukrmetallurgprom" and Federation of metallurgists of Ukraine appealed to the First Deputy Minister of infrastructure of Ukraine Dmitry Abramovich regarding the increase of efficiency of use of infrastructure public transport companies to meet the needs of the MMC of Ukraine in the conditions of crisis caused by COVID-19.
"Ukraine is experiencing an extremely difficult time associated with an outbreak of coronavirus СOVID-19, which can have long-term negative consequences for the Ukrainian economy and lead to a substantial reduction of exports and significant reduction of GDP. The decline in demand and falling prices for the metal in the world, called the suspension of the construction and automotive industries, led to the forced reduction of production volumes of domestic steel enterprises.
In such circumstances, it is not the only way to keep the export potential of the mining and metallurgical complex of Ukraine is ensuring smooth shipment of iron ore products of domestic manufacturers to the Chinese market, where there is still a demand.
In this difficult time for the country, the pandemic СOVID-19, the Ukrainian exporting producers (ore mining and processing enterprises of Krivoi Rog) was refused by the ICC "South" to fully implement the application for handling their export products in April 2020, is not consistent about 270 thousand tons of iron ore.
the loss of the Ukrainian economy in the form of foregone foreign exchange earnings from export of iron ore in April 2020 may reach 30 million dollars, which will lead to a significant increase in the need for the expenditure of currency reserves of the National Bank of Ukraine (which, to maintain the hryvnia exchange rate of NBU from 10 March 2020 have already spent more than 2 billion U.S. dollars).
it is Important to mention that the current situation threatens a large-scale crisis, not only of the MMC of Ukraine, which is already in a state of crisis, since the second half of 2019, but may relate to a number of related industries that will have extremely negative consequences for employment, filling the state budget and funds and General financial, economic and social situation of Ukraine as a whole.
In our opinion, the state transport company, in particular, AI "Ukrzaliznytsya" and the ICC "South", just have to do everything possible to the plans of Ukrainian miners were met. The issue price is too high to postpone or to expect that the situation will resolve itself.
Taking into account the above and considering the importance of the question raised, I appeal to You, dear Dmitry Vasilyevich, asking immediate attention to the situation in the Ukrainian ports, to contribute as soon as possible its consideration and to take immediate steps to ensure uninterrupted export of iron ore of Ukrainian producers, namely ensure 100% compliance of demands of Ukrainian enterprises-exporters with the public transport companies in the first place, GP MTP "Yuzhny" and at "Ukrzaliznytsya".