85% of scrap metal exported from Ukraine in April went to the unrecognized state of Transnistria. The chairman of the Ukrmetalurgprom association Oleksandr Kalenkov said this live on air of 112-Ukraine TV channel.
According to Kalenkov, the situation harms the Ukrainian metallurgical sector by putting it in an unfavorable position.
"The majority – 85% - of Ukrainian scrap metal in April went to the Transnistria plant. Transnistria is pretty much an enclave, a Russian military enclave. This is even more harmful, taking into account that Russia is in fact subsidizing and sponsoring all the energy resources for this plant. Hence, by shipping scrap metal there, we put our enterprises in an unfavorable position”, - Kalenkov said.
According to Kalenkov, the bill on the extension of the increased export duty passes by the Parliament is a step towards creating a framework for the use of strategic resources – scrap metal, in particular. On the other hand, the massive shipments of Ukrainian scrap metal to the unrecognized Transnistria is a threat to the security of the country.
"By shipping scrap metal there, we are putting our producers in unfavorable positions from the very start. Moreover, what producers are we putting in unfavorable positions? Generally, this concerns the scrap metal-dependent electric steel-smelting facilities such as Dniproelectrostal in Zaporizhzhya, which manufactures metals for our defense sector like armor and so forth. Due to the price of scrap metal, they are often forced to cut their output and remain in standby”, - Kalenkov said.
The law on the extension of the increased export duty on scrap metal to EUR42 per ton, backed by members of parliament from across the spectrum of factions, is an example of a well-thought beneficial state policy that is able to keep the amount of this strategic resource within the country, experts say.
In order to enter into effect, the bill needs to be signed by both the speaker of the Parliament Andriy Parubiy and the President Petro Poroshenko.
"The bill is waiting to be signed by Parubiy. I hope Parubiy signs it in the nearest future. Once he does, the bill will be submitted to the Presidential Administration. I truly hope there will be no delays, and the Presidential Administration will also make the right decision regarding the issue”, - Kalenkov said.