The Federation of Metallurgists of Ukraine is calling on the government to take immediate action to preserve the metallurgical industry, warning of the risk of plant shutdowns, loss of jobs, tax revenues and weakening of the country's defense capabilities.
According to the Federation, the main cause of the crisis was the blocking of maritime exports due to Russian attacks on port infrastructure. Alternative routes through the Danube and western crossings are not able to fully compensate for maritime logistics due to higher costs and limited capacity.
“Only complete and unconditional unblocking of ports for all cargo will save the situation,” metallurgists emphasize.
The Federation calls the increase in freight tariffs of Ukrzaliznytsia by 30% an additional blow.. The statement notes that to produce 1 ton of metal products it is necessary to transport about 3 tons of raw materials, therefore the rise in prices for railway logistics significantly increases the cost of Ukrainian products.
The Federation calls on the state to completely unblock sea ports, cancel the increase in Ukrzaliznytsya tariffs, temporarily reduce the tax burden on enterprises and workers, and, together with international partners, launch mechanisms for insuring war risks and compensating for additional logistics costs.
“A preserved metallurgy means a preserved economy and the long-term ability of the state to provide worthy resistance to an insidious enemy,” the Federation says.