Big business should be a priority in the state’s security policy – Metinvest CFO

The country needs a comprehensive ecosystem that will perceive the steel industry as a basis for production and further investment

Big business should be a priority area of the state’s security policy, as it lays the foundation for the development of small and medium-sized enterprises and a strong economy. This was stated by Yulia Dankova, CFO of Metinvest Group, in an interview with Delo.ua.

In her opinion, the main thing right now is survival and the security situation. Important strategic decisions that will allow production to be resumed or prevent business processes from deteriorating, preserving jobs and avoiding staff losses.

As Metinvest’s CFO noted, security is not only about physical security, but also about investment security.

“We see some concern among investors and their reluctance to invest in Ukrainian projects due to the war. Therefore, Ukraine needs investment security guarantees to restore investor confidence and attract capital,” she explained.

Yulia Dankova believes that the country needs a comprehensive ecosystem that will perceive the mining and metallurgical industry not only as a source of raw materials, but also as a basis for production and further investment, further processing, and the creation of competitive products.

She emphasized the importance of a predictable tariff policy for state monopolies and an investment-friendly tax policy.

Businesses also expect the state to defend their interests in foreign markets and protect domestic producers.

“This protection should not be perceived as a policy of privileges; it should be the correct use of the opportunities provided by international law in connection with the war,” added Yulia Dankova.

In addition, resources are needed within the country, and a particularly significant problem is the shortage of personnel – not only qualified personnel, but also ordinary workers. In this case, state assistance is needed. Metinvest, for its part, is doing its utmost to facilitate the integration of mobilized workers.

Yulia Dankova also commented on how the dynamics of budget revenues correlate with the dynamics of large businesses’ financial indicators. The latter is not positive for the group, mainly due to the shutdown of production facilities in Pokrovsk at the beginning of 2025.

Metinvest’s CFO noted that the growth in tax revenues is not related to the fact that it has become easier for large businesses or that there is economic growth.

“I can’t speak for everyone, but in our case, tax revenues are growing due to changes in legislation adopted at the end of last year: an increase in the military tax rate from 1.5% to 5%, as well as annual indexation of resource taxes, land fees, etc.,” she explained.

In the first eight months of this year, Metinvest paid more than UAH 12 billion in taxes despite the shutdown of its Pokrovsk facilities. Yulia Dankova preliminarily predicts that the group’s tax deductions this year will remain at the 2024 level, but the fourth quarter is still ahead, and the situation is not favorable at the moment.

It should be noted that Metinvest recorded an overall decline in production in January-September. Pig iron production decreased by 6%, and steel production – by 10%. Production of iron ore concentrates decreased by 4%, and coke – by 3%.