The Ukrainian government has signed a memorandum of understanding with the country's mining and metallurgical companies and trade unions, aimed at the minimization of the consequences of the current crisis in the industry.
Accordingly, the Ukrainian government has pledged to offer credits at minimum rates to mining and metallurgical companies, to contribute to the increase of steel demand in the domestic market by introducing a balance between production and consumption using stabilization funds and special purpose programs, to deliver natural gas at the prices of foreign suppliers taking into account the transportation costs on the territory of Ukraine, to compensate for VAT within five days after application, to reduce the tariffs on electricity, to impose new tariffs on cargo transportation by railway considering the decrease of steel product prices, and to implement the registration of domestic prices for mining, coal and steel production and to announce changes that occur in the prices.
On the other hand, the mining and metallurgical companies are to maintain production, even if at minimum levels, in order to keep production capacities ticking over, and are also to maintain jobs, salary levels and other social securities for employees. Moreover, the companies have pledged to implement measures directed toward the decrease of steel production costs, to hasten the completion of negotiations with raw material, ferroalloys and fuel resource suppliers for the sale of supplies at prices not exceeding world prices which would thereby allow steelmakers to regain their costs, and to increase the use of coke in order to reduce the consumption of natural gas.
The memorandum is opened for signing by all mining and metallurgical companies.