Ukraine loses foreign exchange and billions of hryvnias of GDP due to the requirement for industry to import 80% of electricity: “Ukrkoks”
Mining and metallurgical enterprises of Ukraine were threatened with shutdown due to the government’s new requirement to import 80% of the necessary electricity from abroad. Such a decision caused serious criticism from industry associations, which warn of possible negative consequences for the country’s economy
In a letter to the government, of the Minister of Energy and NKREC, the association warns of the catastrophic consequences of such a decision.
“Unstable power supply makes it difficult to plan production, which negatively affects industry and related industries such as railways and ports. This will lead to a decrease in the production activity of large enterprises, a decrease in tax revenues, foreign exchange earnings and GDP, as well as an increase in unemployment.”, the letter says.
In addition, the decision of the Cabinet caused an unjustified increase in prices for interstate crossings, which causes additional losses to national manufacturers.
“Ukrkoks” calls on the government to cancel the latest changes and return to the previous electricity import norms (30% from May to September or 50% from October to April) or to set an adjustment of up to 50% throughout the year.
The association also suggests that during the distribution of domestic generation limits by regions, the volume of imported electricity should be added to the regional limits, which will ensure stable energy supply and contribute to economic recovery.
