The debts for VAT reimbursements to steelmakers continue to grow in Ukraine, reaching a record amount of UAH 4.5 billion (approx. $568 million) as of April 1, 2010.
"The inequality of VAT refunding during all the past years is very alarming," the Ukrainian Federation of Metallurgists has stated. Of the total debt of UAH 4.5 billion, the Ukrainian state owes ArcelorMittal Kriviy Rih UAH 1.8 billion (about $227.3 million), and owes UAH 1.2 billion (about $151.5 million) to Ilyich Iron and Steel Works of Mariupol (Ilyich), i.e., the debts to these two companies amount to 66 percent of the total debt. Meanwhile, the state owes UAH 153 million ($19.3 million) in VAT refunds to Metinvest Holding and UAH 355 million ($44.8 million) to Industrial Union of Donbass.
"The VAT refund issue threatens the stability of Ilyich's operations. We intend to send a telegram to the prime minister and the president to again inform them about the difficult situation at the Ilyich mill and the necessity for the return of VAT every month," Ilyich CEO Vladimir Boyko said.
The total debts for VAT reimbursements in Ukraine amount to more than UAH 28 billion (about $3.535 billion).