Ukraine may cancel MoU with mining and metallurgical companies

Wednesday, 26 May 2010 12:27:35 (GMT+3)   |  

By the end of the second quarter of this year the Ukrainian Ministry of Economy may cancel the memorandum of understanding (MoU) between the Ukrainian cabinet of ministers and the country's mining and metallurgical companies, which was signed in November 2008.

Within the framework of the MoU, the Ukrainian government imposed a moratorium on the increase of railway transportation and electricity supply tariffs for domestic mining, metallurgical and chemical companies.

"We are for the equalization of tariffs for all industries. The MoU was a forced anti-crisis measure, and it worked. But if someone pays a lower price, then someone else covers these losses, and this is not normal," said first deputy minister of economy Anatoliy Maksyuta.

Mr. Maksyuta also noted that the Ministry of Economy is monitoring the situation in the mining and metallurgical industry, and sees improvements in this sector.

The moratorium on tariff increases for mining and metallurgical companies was for the last time extended in April this year until July 1, when the companies agreed to fix the Q2 domestic prices for steel products at level of April 1. However, some of the mining and metallurgical companies have broken the conditions of the MoU.


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