Tiraspol, May, 25. /Novosti Pridnestrovya/. The Moldavian Metallurgical Plant intends to return to the former positions in the Ukrainian market. Recall that since last summer, by the decree of the President of Ukraine, sanctions were imposed on the largest Pridnestrovian enterprise (along with some Russian companies). Approximately in the same period, the European Union introduced a restriction on the import of steel products. They began to apply a duty of 25% for supplies that are not included in the quota.
As a result, this led to a general decline in industrial output. In January-April of 2019, it was 12.4% lower than the same period of 2018.
“We were very much limited in sales from both the East and the West. But, as for our work within the framework of the quotas that have been submitted to us, the plant takes them up completely. Moreover, within the framework of quotas, the plant is trying to unload the rental costs at the peak, i.e., it would simply be irrational to ship during winter months, since the rental was still lower in prices,” the Deputy Chairman of the Government, Minister of Economic Development, Sergey Obolonik commented to the Novosti Pridnestrovya News Agency.
At the end of March this year, the National Security and Defense Council of Ukraine excluded Moldavian Metallurgical Plant OJSC from the sanctions list. And already this month the plant starts shipping products for sales. The Ministry of Economic Development notes: it is always harder to return to the market than to leave it, but at the MMP, they intend to increase sales.
“There are quite distinct plans for working with counterparties, because the market is very good for metallurgists. Shipment to the Ukrainian market started in May, then we will reach the positions that we can safely occupy in the Ukrainian market. Sanctions lifting will allow the plant to increase sales,” the Head of Department said.
While Ukraine lifted import sanctions for the MMP products, the export duty on scrap still stands. Such a restrictive measure has led to the fact that the price of raw materials has increased and its purchases in this country have become unprofitable. Therefore, the Pridnestrovian giant made directional change: scrap began to be supplied from other countries, including Romania and Moldova. And, as noted in the Ministry of Economic Development, it is enough for the current sales volume.
