After a two-year pause, Ukrzaliznytsia JSC (UZ) will put up lots of scrap metal in the Prozorro. Sales in mid-May, according to Yevhen Shramko, a member of the company’s board.
“If everything goes according to plan, in mid-May you will see the first lots (of scrap metal – IF-U) in Prozorro. Sale… We are aiming for May 15,” Shramko said at a meeting with potential buyers of scrap metal in Kyiv on Tuesday.
According to him, Ukrzaliznytsia plans to sell about 70,000 tons of scrap metal at the first stage.
According to the presentation at the meeting, the total amount of available scrap available for sale is 159.5 thousand tons.
Earlier it was reported that in early April, the Cabinet of Ministers allowed Ukrzaliznytsia to independently decide on the disposal of property with a book value of less than UAH 500 million, so the company will be able to start selling scrap metal and crushed stone.
The Ministry of Communities and Territories Development reported that Ukrzaliznytsia will be able to sell more than 218.6 thousand tons of ferrous scrap for UAH 1.6 billion, 3.8 thousand tons of non-ferrous scrap and alloys for UAH 233.4 million.
In 2023, Ukrzaliznytsia held more than 100 successful electronic auctions for the sale of scrap and 47 auctions for the lease of property assets. The company received more than UAH 535 million in additional revenue from the sale of ferrous and non-ferrous scrap alone.
In September 2023, a government decree canceled the procedure for alienating Ukrzaliznytsia’s property by decision of the company’s board. The sale of property, including scrap metal, and lease were to be carried out only with the approval of the Cabinet of Ministers. However, the new resolution did not specify the procedure for government approval of such decisions.
To address this issue, the company initiated amendments to the resolution in December 2023.
In an interview with Interfax-Ukraine, former Ukrzaliznytsia CEO Yevhen Lyashchenko said that the company’s scrap stocks amounted to 184,000 tons at the beginning of 2023.
The company resumed holding scrap auctions in 2022 and offered to sell part of the scrap for export at foreign market prices. The company officially addressed the government with proposals to adjust the procedure for managing its property, according to which it proposed to allow the sale of some scrap to major global producers of mining and metals products under direct bilateral agreements without duty.
In addition, the company submitted a list of nearly 40 foreign companies that might be interested in the proposal.
