The Ukrainian Ministry of Industrial Policy has prepared a number of measures in order to revive the country's metallurgical industry and take it out of its current crisis.
In particular, the ministry has announced that the Ukrainian Cabinet of Ministers (KMU) has developed a project entitled ‘About stimulation of technical reconstruction and modernization of metallurgical enterprises,' under which the government has drawn up a mechanism for the reimbursement of VAT within a five-day period to metallurgical companies for imports of equipment necessary for the modernization of production capacities.
In addition, the KMU has prepared a decree entitled, ‘About the surcharge on prices for natural gas,' which foresees a cancellation of the 12 percent surcharge on natural gas prices for metallurgical enterprises for September 2008.
Moreover, the KMU has worked out additions to a list of energy-saving materials, equipment, components and units which will be exempted from import duty.
Also, a resolution on additions to an order for providing special permissions on use of natural resources in 2008 has also been prepared by the KMU. Under the resolution, the government will prepare a list of perspective deposits of iron ore and coking coal and will also prepare a mechanism for their transfer to the domestic steel mills which have no raw material base of their own.
These measures are aimed at helping the Ukrainian domestic metallurgical industry to get out of its crisis. The recent sharp rise in prices for energy, raw materials and railway tariffs on the back of the reduction in export market demand for Ukrainian products has resulted in a decrease in Ukrainian steel production.