May 30, 2024

“Ukrzaliznytsia” still does not sell scrap metal: the Cabinet of Ministers is asking to influence the company

“Ukrmetalurgprom” appealed to the parliament with a request to unblock scrap sales of JSC “Ukrzaliznytsia”.”, — write:

“Ukrmetalurgprom” appealed to the parliament with a request to unblock scrap sales of JSC “Ukrzaliznytsia”.

Photo by ua.depositphotos.comPhoto by ua.depositphotos.comBack in September last year, Ukrzaliznytsia stopped selling scrap through Prozorro auctions. And it still hasn’t resumed sales – although back in February, UZ chairman Yevhen Lyashchenko assured that his company would resume deliveries of scrap metal to the domestic market in the amount of 20,000 tons every month from the second half of March 2024.

Today, taking into account the possibilities of JSC “Ukrzaliznytsia” for the shipment of scrap metal, we can talk about a very likely disruption of the annual plan for the sale of scrap metal by this company. Therefore, OP “Ukrmetalurgprom” appealed to the Verkhovna Rada with a request to unblock the sale of scrap metal by JSC “Ukrzaliznytsia”. This is stated in a letter addressed to the deputy chairman of the Committee on Economic Policy, Dmytro Kysilevskyi.

In particular, Ukrmetallurgprom noted that JSC Ukrzaliznytsia stopped selling and supplying this strategic and scarce raw material for Ukrainian metallurgists to the domestic market of Ukraine since last September, 2023, and this had an extremely negative impact on the activity of the entire metallurgical industry of Ukraine.

“The main motivation for stopping this process is the introduction of changes and additions to some by-laws. However, there are no compelling reasons that would make it impossible to sell scrap metal from JSC “Ukrzaliznytsia” enterprises, provided that the relevant procedures of an organizational nature are followed,” the letter emphasizes.

“Ukrmetalurgprom” noted: the sale of scrap metal by “Ukrzaliznytsia” is necessary for the company itself, as it provides UZ with significant financial income, and it is necessary for the metallurgical industry of Ukraine, because enterprises may not receive a significant amount of strategic raw materials, which will lead to the disruption of production programs and, as a result, to significant losses of the state budget of Ukraine.

It will be recalled that during 2023 “Ukrzaliznytsia” held more than 100 electronic auctions for the sale of scrap metal. Only from the sale of scrap metal and non-ferrous metals, the company received more than UAH 535 million in additional income. Thus, as of now, the company has not received nearly 300 million hryvnias.

But since September, “Ukrzaliznytsia” stopped putting up its scrap metal for sale at “Prozorro” auctions. Sales stopped immediately after the Cabinet of Ministers forbade UZ to sell scrap to bypass the “Prozorro” system – because this scheme, by all indications, contained corruption risks.

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