On May 29, 2015., state monopolist “Zaporozhyeoblenergo” cut off “Zaporizhstal” Steel Works from electric power supply, official notice to that effect was sent to Steel Works.
The day before, on May 22, 2015, “Zaporizhstal” Steel Works was unlawfully shut off from automatic VAT refund. In doing so, Steel Works was put under conditions of scarcity of working capital, necessary for making the obligatory payments to state monopolists for the supplied energy carriers.
«It produces the impression, that Steel Works’ working capital purposefully, by artificially means was washed away prior the effecting of important payments. Such actions from the side of authorities could be considered either as unprofessionalism, which could lead to complete collapse of economy and the end up of domestic enterprises. Either such actions should be interpreted as deliberate campaign on demolishing the Steel Works and its work collective. There is a feeling, that we by our effective work simply get in the somebody’s way”– stated Rostyslav Shurma Chief Executive Officer of “Zaporizhstal” Steel Works.
Cutting off the electric power supply from metallurgical giant would result in ecological and technogenic catastrophe. Sudden shut down of gas cleaning and water treatment systems, units with big quantity of molten metal, pressure tanks and vessels fraught with consequences of broad-scale technological emergency, jeopardize human life and health.
To eliminate the damage caused by accident resulted in cutting off of electric power supply and to start up the production process requires the colossal resources and time, what at present day conditions means practically the downfall of the Steel Works- largest city forming enterprise of Zaporozhskaya region and Ukraine. Shut down of running enterprise result in short payment of billions of UAH to budgets of all levels. Close down of “Zaporizhstal” Steel Works would deliver the enormous economic and social blow to region, what inevitably result in social collapse in frontline Zaporozhye region.
Presently, the total debt of the state to “Zaporizhstal” Steel Works on VAT refund, amounts to approximately 650 million UAH. The debt of “Zaporizhstal” Steel Works for the electric power supply to state monopolist – “Zaporozhyeoblenergo” company amounts to around 98 million UAH. Previously, Steel Works in due time and in required amount paid for the electric power, which had been consumed in the framework of its production operation.
Steel Works has exemplary financial and production history, and is the biggest taxpayer of Ukraine and Zaporozhye region. In 2014 “Zaporizhstal” Steel Works invested 1,7 million UAH into the modernization of production process. “Zaporizhstal” Steel Works, per the results of 2014, transferred to the budgets of all levels more 1,4 billion UAH, that is by 34% (366 million UAH) more the amount of transfer in 2013 (in 2013 – 1,08 billion UAH). In April 2015, Steel Works raised wages to employees of the Steel Works on the average by 23 %.