Ukrzaliznytsia canceled several auctions for the sale of scrap metal, which took place in early February 2022.
Not one metallurgical enterprise was recognized as the winner in several auctions for the sale of scrap metal applied to Ukrzaliznytsia about their cancellation. Therefore, the information in the media that the winners themselves asked Ukrzaliznytsia to cancel the auctions is not true. The President of the Association of Enterprises said this Ukrmetallurgprom Alexander Kalenkov, his press service reported on Tuesday, May 21.
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According to Kalenkov, Ukrainian metallurgical plants have been waiting for a decision for two years Ukrzaliznytsia about these fixed auctions. Businesses have paid a deposit of several million hryvnias, signed all contracts and sent them to Ukrzaliznytsia, they are ready to buy these raw materials. However, the company refused to send scrap metal.
Kalenkov believes that a paradoxical situation develops when the demand of metallurgists for scrap metal grows, Ukrzaliznytsia could generate additional revenue, “but makes an anti-state decision to cancel auctions that have already been conducted.”
“Actions of JSC management Ukrzaliznytsia hard to understand. The end consumers of scrap metal are Ukrainian metallurgists, and they are ready to buy raw materials, because we need them to increase production volumes. Therefore, the information that the metallurgical plants themselves allegedly turned to Ukrzaliznytsia behind the cancellation of auctions is not true,” stressed Kalenkov.
This is already known Ukrzaliznytsia stopped selling scrap metal in September 2023. This happened after the Cabinet of Ministers banned Ukrzaliznytsia from selling scrap that bypasses the Prozorro system due to potential corruption risks.
And this week Ukrzaliznytsia canceled several scrap metal auctions that took place in early February 2022. In total, 50 lots for the sale of raw materials in the amount of 33.8 thousand tons were canceled for a total cost of almost UAH 300 million.
Let’s remember that in the first quarter of 2024, Ukrainian metallurgists increased production by a third. In January-March, 1.59 million tons of cast iron, 1.69 million tons of steel (+36.6%) and 1.39 million tons of composite products were produced.
Source: korrespondent
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