After electric power supply to the works had been cut off, part of value-added tax in the amount of UAH 204 million (according to declaration for December of 2014) was reimbursed to “Zaporizhstal” Integrated Iron and Steel Works on Friday, 29th of May, 2015, at 18:30. These funds were immediately transferred by the works in full for offset of existing debt to public monopolies: companies “Zaporizhoblenerho” and National Joint-Stock Company Naftogaz of Ukraine. After appropriate financial arrangements the company “Zaporizhoblenerho” restored electric power supply to “Zaporizhstal” Integrated Iron and Steel Works.
Earlier, at 11:00 on the 29th of May, key substation of “Zaporizhstal” Integrated Iron and Steel Works was cut off from electricity. Technological breakdown and negative environmental consequences were avoided due to professional actions of the works specialists. Production situation was kept under control due to implementation of emergency measures by the technical services of the works.
“Thankfully, common sense triumphed, but we did not manage to avoid negative consequences. The works suffered process losses due to cut off of power supply. An integrated solution is needed for real economy: normalization of fiscal policy of the state, regular VAT refund, which will allow enterprises to pay for the consumed resources in good time. We fear that similar situation with lack of working capital owing to non-reimbursement of VAT will recur every month”, stated the Chief Executive Officer of “Zaporizhstal” Integrated Iron and Steel Works Rostyslav Shurma.
Currently the state’s debt on VAT refund to “Zaporizhstal” Integrated Iron and Steel Works constitutes UAH 450 million.