Import 80% of electricity: Metinvest offers a compromise solution

The obligation to import 80% of electricity, imposed by the Cabinet of Ministers on business, will lead to a decrease in production and closure of businesses, because the cost of such electricity is very high. Therefore, a compromise solution must be worked out. Maxim Zhuravlev, director of the department of strategic acquisition of raw materials and energy resources at Metinvest, said this at a working meeting organized by the Federation of Employers of Ukraine, Business.Censor reports on Friday, July 5.

“We operate in international markets with very high competition, where cost and logistics are the main factors that allow us to be successful or leave them entirely and reduce our production, unfortunately, now are also increasing costs all Electricity accounts for more than 40% of the cost of our mining and processing complex,” said Zhuravlev.

According to him, the decision of the Cabinet of Ministers to increase the share of imports from 50 to 80% became a “cold shower” for the industry, because it did not interact with the business, and accordingly, not It is integrated by businesses in their investment programs.

“We are trying to plan our work for some long-term periods And we included in our history the cost of electricity based on 30, then 50%. production, unfortunately, becomes unprofitable It is impossible to produce products with a minus cost So, of course, such a cost of electricity and such regulations lead to the fact that, unfortunately, we will simply stop ,” he emphasized.

Zhuravlev emphasized that due to the reduction in production, budget revenues will also decrease, so it is very important to find a compromise.

“The return to the import of 50% of electricity will be a compromise solution from the point of view of having both the energy system of Ukraine, the mining and processing plant and the metallurgical business in Ukraine Also, of course, we will really wants to manage the planning processes – that’s why the story is so important for us in the purchase of the intersection for the longer term,” concluded Zhuravlev.

Previously, the Cabinet of Ministers adopted amendments to the resolution, which stipulates that any industrial facility must import 80% of the electricity for its needs. Ukrenergo, on the other hand, guarantees the industry another 20%. Meanwhile, business representatives called on the authorities to reconsider this decision.

We remind you that from June 1, 2024, the Cabinet of Ministers significantly increased electricity bills for the population – up to 4.32 UAH/kWh. At the same time, Ukraine increased the maximum price of electricity for businesses.