Ukrzaliznytsia asks govt to allow sale of 25-30% of scrap metal for export under direct contracts

KYIV. Sept 19 (Interfax-Ukraine) – JSC Ukrzaliznytsia has appealed to the Cabinet of Ministers with a request to allow the sale of part of ferrous metal scrap to major global manufacturers of mining and metallurgical products under direct contracts without an export duty (set at the level of EUR 180 per tonne), Board Chairman of Ukrzaliznytsia Yevhen Liaschenko said in an interview with Interfax-Ukraine.

“There is an idea to sell part of the scrap for export at prices on the external market, which are now 2.5-3 times higher than prices on the domestic market. Back in April, we officially approached the government with proposals to adjust the procedure for managing Ukrzaliznytsia’s property, according to which we propose to allow sell part of the scrap to large global manufacturers of mining and metals industry products under direct bilateral agreements without duty,” Liaschenko said.

According to him, proposals were also submitted in terms of reaching break-even as part of finalizing the financial plan.

The scrap will be offered to the largest European manufacturers ArcelorMittal, Voestalpine, U.S. Steel, Moravia Steel and others under bilateral agreements.

“Selling through intermediaries, through commercial companies is opaque and may contain corruption risks. We are interested in contracts being direct,” the Ukrzaliznytsia head said.

According to calculations, the state-owned company can sell 25-30% of its available scrap for export.

Ukrzaliznytsia scrap stocks at the beginning of the year amounted to 184,000 tonnes.


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