Metinvest brought $1.3 billion in foreign exchange earnings to Ukraine in January-September

Metinvest Group brought $1.3 billion in foreign exchange earnings to Ukraine in January-September 2023. This was announced by Yulia Dankova, Chief Financial Officer of the company, at the Export Credit Forum 2023.

According to her, Metinvest has a significant potential to increase exports. The first factor that will contribute to the development of the company’s export capabilities and the growth of foreign exchange earnings is the safe shipment of products via the Black Sea.

«We must have a constant supply of ships, insurance for these ships, and the ability to cooperate with financial institutions. We need to be able to receive funds not after passing the Bosphorus or Suez, but as before – after loading the products on the ship,» Yuliya Dankova stressed.

The second factor is the possibility of obtaining financing for small and medium-sized Ukrainian companies that consume Metinvest’s metal products, so that they can export products and have a stable cash flow.

«Then we as suppliers will be protected. This will also contribute to the growth of exports and foreign currency exchange in Ukraine,» she added.

Another condition for the growth of foreign exchange earnings is to resolve the issue of re-clearing goods in transit through European countries. Ukraine should join European initiatives to develop a computerized transit system, according to Metinvest’s CFO.

In addition, expanding the range of non-resource commodity groups under the Classification of Economic Activities supported by the Export Credit Agency could increase the company’s export opportunities. Currently, the list of steel products includes only pipes and does not include flat and long products, which are high value-added products. Recognition of Ukrainian quality certificates or assistance in certifying products in foreign markets would also help promote domestic products globally.

Currently, Metinvest’s operations are adversely affected by staff shortages. Business and the state should become a reliable partner for Western consumers even in times of war, she summarizes.

As GMK Center reported earlier, as of November 2023 Metinvest Group’s steel plants were operating at 65-75% of their capacity. The company’s mining and processing plants operated at 35-40% of their capacity.

In January-September, Metinvest reduced steel production by 43% compared to the same period in 2022 – to 1.53 million tons. Pig iron smelting during this period amounted to 1.34 million tons, which is 46% less compared to January-September 2022. The production of iron ore concentrate decreased by 23% y/y – to 7.51 million tons.