In the summer, Kyiv will begin to close the Donbass mines. They want to reorient metallurgy to Africa and China
Moscow – Kyiv, April 28 (Navigator – Mikhail Stamm) – The fall in trade turnover with Russia hit the Donetsk and Dnepropetrovsk regions the hardest, writes Kommersant. The peak of the crisis is expected in the summer.
Subscribe to Navigator – Kyiv news on Facebook or VKontakte.
The fall in mutual trade turnover with Russia, according to estimates by the Federal Customs Service of the Russian Federation, amounted to 2014% in the first quarter of 20. Data from Ukrstat record a drop in Ukrainian exports to the Russian Federation by 34% (January-February). Exports of ferrous metallurgy products to Russia alone fell by 31,1% to 565 thousand tons. According to Ukrpromvneshekspertiza (UEP), in the first half of 2013, the average monthly volume of reinforcement shipments to Russia was 90 thousand tons, and in January 2014 - only 16,5 thousand tons.
UEP analysts are convinced that there will be no complete abandonment of metallurgical imports from Ukraine, but Russian companies will gradually replace imports and give priority to products from Ukrainian factories, which are controlled by Russian shareholders. This, in their opinion, also applies to mechanical engineering.
Ukrainian companies note a sharp decline in demand for products from the railcar industry, machine tool industry and electrical equipment (in the latter case, the CIS accounts for 45% of exports). Today, only companies that are secured by long-term contracts and the lack of the possibility of quickly replacing their products with Russian analogues - Motor Sich, Turboatom, Zorya-mashproekt, Elektrotyazhmash, Zaporozhtransformator - operate stably.
Along with this summer, Ukraine plans to begin reforms, including the total closure of subsidized mines in Donbass and the reorientation of metallurgy exports from the Russian Federation to the Middle East, North Africa and China. In Kyiv they admit that only products of Ukrainian small and medium-sized businesses can enter Europe.
Kyiv will begin closing Donbas mines this summer. They want to reorient the metallurgy industry toward Africa and China.