Zaporizhzhia enterprises of Metinvest refused tax benefits for more than 350 million hryvnias in favor of the state in the conditions of martial law

“ZAPORIZHCOKE”, “ZAPOROZHOGNEUPOR”, “ZAPORIZHZHYA CASTING AND MECHANICAL WORKS” and the joint venture “ZAPORIZHSTAL” will refrain from tax benefits stipulated in the Law of Ukraine No. 3050 “On Amendments to the Tax Code of Ukraine and other legislative acts of Ukraine regarding exemption from payment of environmental tax, payment for land and tax on immovable property, other than a plot of land, for destroyed or damaged immovable property”. The amount of tax deductions additionally paid by Zaporizhia metallurgists to Metinvest to the state budget during the grace period exceeds 350 million hryvnias, of which more than 200 million hryvnias went to local budgets.

According to the new regulations of the law, enterprises of the Zaporizhzhia district could take advantage of benefits and not pay a part of tax assessments – in particular, land tax, real estate tax and environmental tax – for the period from March to December 2022. If the business transferred these payments for the specified period to the budgets in full, the company has the right to adjust the amount of charges and consider them as payments made to the state treasury in advance.

“Metinvest’s principled position is to maximally and comprehensively support Ukraine in this difficult time for all of us. For example, programs to help defenders of Zaporizhzhia or provide financial support to Zaporizhzhia residents who suffered from shelling would be impossible to implement without Metinvest’s multimillion-dollar deductions in Zaporizhzhia. With our decision, we guarantee today the financing of vital items of the city’s expenses. We are working for Ukraine’s victory and bringing it closer in various ways, and the decision to refrain from using tax benefits for the benefit of the state and the city in the conditions of martial law is one of them,” stressed Oleksandr Myronenko, Chief Operating Officer of Metinvest Group.

Anatoliy Kurtev, secretary of the Zaporizhzhia City Council, told how important a contribution to the support of the city such a decision of a responsible business  is: “Indeed, amendments were made to the Tax Code, according to which taxpayers have the right not to pay certain types of taxes for the period March-December 2022. And, accordingly, if the environmental tax, land and real estate taxes are not paid, the city will not receive more than 920 million hryvnias, and this is a very large burden on the budget, which is actually equal to two months of the city’s full life activity.”

We will remind you that in 2022, despite the temporary forced facilities mothballing, the loss of logistics routes and a significant reduction in production volumes, Metinvest’s Zaporizhzhia assets paid all taxes in full. The total amount of deductions and fees paid to the budgets of all levels for 2022 reached 3.4 billion hryvnias. Of these, Metinvest’s Zaporizhzhia assets – “ZAPORIZHCOKE”, “ZAPOROZHOGNEUPOR”, “ZAPORIZHZHYA CASTING AND MECHANICAL WORKS” and “ZAPORIZHSTAL”- allocated almost 820 million hryvnias to local budgets.

ZAPORIZHSTAL is classified in Metinvest Group’s financial statements as a joint venture, taking into account IFRS rules.