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Ukrainian government postponed the introduction of new environmental standards for metallurgy

28/ 11/ 2022
  On November 25, the Cabinet of Ministers of Ukraine took a step to support the domestic industry during the war. Thus, amendments to the action plan for the implementation of the State Program for Economic Stimulation to overcome the negative consequences caused by restrictive measures to prevent the occurrence and spread of acute respiratory disease COVID-19 caused by the coronavirus SARS-CoV-2 for 2020-2022 have been introduced for companies: the possibility to postpone the implementation of the declared environmental projects with a planned implementation period until 2022 to 2023; the current technological standards for coke and sinter production, glass production, including glass fiber, were extended until December 31, 2023. The European Business Association has appealed to the Ministry of Economy several times this year. Thus, the achievement of these standards and the implementation of environmental measures are mainly related to long-term capital investments, the attraction of which, under martial law, is quite difficult both in terms of the financial capabilities of enterprises and in terms of access to appropriate financing. Moreover, the implementation of some projects during martial law, particularly in terms of decommissioning one equipment for replacing it with a more innovative one, may not meet the needs of the company. This is due to a sharp decrease in demand for industrial products in the domestic market, reduced opportunities for exporting products, as well as critical destruction of energy infrastructure as a result of russian armed aggression against Ukraine, which forces companies to reduce production volumes and consumes less energy to ensure the stability of the countrys energy system.

On November 25, the Cabinet of Ministers of Ukraine took a step to support the domestic industry during the war.

Thus, amendments to the action plan for the implementation of the State Program for Economic Stimulation to overcome the negative consequences caused by restrictive measures to prevent the occurrence and spread of acute respiratory disease COVID-19 caused by the coronavirus SARS-CoV-2 for 2020-2022 have been introduced for companies:

  • the possibility to postpone the implementation of the declared environmental projects with a planned implementation period until 2022 to 2023;
  • the current technological standards for coke and sinter production, glass production, including glass fiber, were extended until December 31, 2023.

The European Business Association has appealed to the Ministry of Economy several times this year. Thus, the achievement of these standards and the implementation of environmental measures are mainly related to long-term capital investments, the attraction of which, under martial law, is quite difficult both in terms of the financial capabilities of enterprises and in terms of access to appropriate financing.

Moreover, the implementation of some projects during martial law, particularly in terms of decommissioning one equipment for replacing it with a more innovative one, may not meet the needs of the company. This is due to a sharp decrease in demand for industrial products in the domestic market, reduced opportunities for exporting products, as well as critical destruction of energy infrastructure as a result of russian armed aggression against Ukraine, which forces companies to reduce production volumes and consumes less energy to ensure the stability of the country’s energy system.

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