Interpipe proposes to improve the draft law on insurance of military risks

Interpipe company proposes to improve the draft law on insurance of military risks in terms of extending insurance to areas of active hostilities.

Nataliya Sydoruk, Interpipe’s director of relations with state bodies, said this at the online event «What prevents іеууд production from growing?», which was held by the Center for Economic Strategy together with the German Economic Team. The media partner of the event was GMK Center.

One of Interpipe’s pipe enterprises is located in the city of Nikopol, which is actually on the front lines under constant shelling. Such extremely difficult operating conditions require additional government attention to residents and businesses living and working in such circumstances.

«Today, there is no economic assistance from the state for such front-line territories,» Nataliya Sydoruk said.

At the same time, the company has objections to the draft law on military risk insurance in terms of export-import cargo transportation. In addition, the concept embedded in the text of the draft law should be completely revised, since it defines risk zones – zones of active hostilities and 100 km from these zones, which will not be covered by war risk insurance.

«On the example of the presented text of the draft law, we will simulate the situation. Our plant is located in Nikopol, in the very center of active hostilities. When we take our products out of the city and drive another 100 km, this is not covered by insurance. Insurance comes in a relatively safe area. What is the point for us then?» said the GR director of Interpipe.

According to Natalia Sydoruk, these problematic issues were raised before the NBU, and it is expected that they will be taken into account during the further consideration of the draft law on military risk insurance.

As GMK Center reported, steel production at Interpipe for January-June 2024 increased by 24.4% compared to the same period in 2023 – up to 428,000 tons. Pipe output increased by 23.4% y/y – up to 258,000 tons. The production of railway products increased by 19.1% y/y during the period, to 56,000 tons, in particular, railway wheels – 42,000 tons (+20% y/y).

As GMK Center reported earlier, during the first half of 2024, the company Interpipe transferred UAH 2.4 billion to the budgets of all levels and extrabudgetary funds. Compared to the same period last year, the volume of tax deductions increased by 37%.

Interpipe is an international vertically integrated tube and wheel company, which is among the top 10 manufacturers of seamless pipes in the world and among the top 3 manufacturers of solid-rolled railway wheels.