The regulation about increasing the competitiveness of mining and steel industry mills will lead to a recovery of the branch. It was announced today by Sergey Taruta, Chairman of the Board of Directors of ISD Corporation.
— Currently there are some improvements but we can’t speak about changing the situation in the whole mining and steel branch. Today metallurgists don’t have problems with sales, there’s a problem of cost. It doesn’t allow the metallurgists to enter the market with attractive prices.
Enterprises have the shortage of circulating assets since they have to make advance payments for raw materials, and the consumers pay for the factory shipments by installments. At the same time we can’t expect today that the government will give us money because it’s a utopia.
But there exist other mechanisms. It’s the law which we called “the regulation about the increase of the competitiveness of the enterprises”. We called it in such a way not to be sanctioned for protectionism by other countries. The mechanism provides for granting the state guarantees for taking out loans for the modernization of the mills of mining and steel branch. There’s one more mechanism which involves advance payments for the reduction of emissions within the framework of Kyoto protocol. Both mechanisms are quite real variants, — said Mr. Taruta.
The source: RBK-Ukraine