State monopolist «Zaporozhyeoblenergo» cut off PJSC «Zaporozhstal» from electrical power supply, as a result of debts of the Steel Works for the consumed electrical power in the amount of 140 million UAH., which arose due to indebtedness of the state before PJSC «Zaporozhstal» on VAT refund in the amount of more 822 million UAH. Thank for competent technical activities of Steel Works’ specialists the complete shut down of the Works and emergencies were prevented, there is no life hazard and health risks to the plant’s employees.
Regarding this situation, Rostyslav Shurma CEO of PJSC”Zaporozhstal” made a statement:
«We can not allow the complete shut down of the Steel Works and leave the staff members without salary, that is why we have taken the complex decision. At the expense of fulfilment of investment program on ecological modernization of the sinter plant we withdrew 70 mil-lion UAH from budget of this project for the partial discharge of debt before “Zaporozhyeoblenergo”. It puts at threat the installation of gas cleaning systems at sintering machines at fixed time, and there is no other alternative but: there are no reserve funds left at the Steel Works. As a result of this payment, the electrical power supply of the Steel Works had been restored and now production facilities are running in normal operation mode. But it is not the solution to the problem – if the situation on VAT recovery is not turned around, the Steel Works would come out to be in final gridlock in the nearest 2 weeks: that is nothing to pay the salary to the employees, no sufficient funds for the modernization of production process and even for the current repairs.
The stalemate situation has come about, when government authorities destroy the operat-ing enterprises, on the one hand, making erosion of the working capital by non- repayment of VAT, on the other hand, – simultaneously demanding 100% payment of services of state monopolists.”
PJSC «Zaporozhstal» is the biggest taxpayer of Ukraine and Zaporozhskaya region. The Steel Works, at year end 2014, transferred to budgets of all levels more 1,4 billion UAH., and in 10 months of 2015 – transferred 2,1 billion UAH.