Mining and metallurgical group Metinvest in January-June of this year, including associated companies and joint ventures, transferred more than UAH 6.3 billion of taxes and fees to the budgets of all levels in Ukraine.
According to the company’s press release on Monday, despite the full-scale Russian invasion of Ukraine, Rinat Akhmetov’s Metinvest remains the backbone of the country’s economy.
It is specified that, in particular, for January-June this year Ukrainian enterprises of Metinvest paid more than 1.5 billion UAH of unified social contribution, almost 1.5 billion UAH of personal income tax and more than 1 billion UAH of profit tax.
In addition, significant sources of filling the state and local budgets of Ukraine were payment for the use of subsoil – UAH 872 million, payment for land – UAH 589 million and environmental tax – UAH 302 million, the press release said.
In the second quarter of 2023, the group transferred to the Ukrainian budget more than 3.8 billion UAH, which is 51% more than in the first quarter of this year. In particular, for April-June compared to January-March 2023, Metinvest enterprises increased payment of unified social contribution by 12%, up to UAH 813 million, personal income tax – by 26%, up to UAH 819 million, income tax – by 45%, up to UAH 643 million.
In April-June-2023, the fee for subsoil use increased 4 times, to UAH 698 mln, land fee – by 4%, to UAH 301 mln, environmental tax – by 23%, to UAH 167 mln.
Metinvest CEO Yuriy Ryzhenkov noted that with the start of the big war, the group gave up tax benefits to which it is entitled under the law and pays taxes in full.
“We understand that our resilience and endurance adds to the state’s ability to hold the blow in economic, defense and social areas. We will continue to be a point of support for the country, the army and Ukrainians. We will help as much as necessary – both before and after the victory”, – emphasized the top manager, who is quoted by the press service.
It is also reminded that taking into account associated companies and joint ventures, in the first quarter of 2023 Metinvest paid more than 2.5 billion UAH of taxes and fees to budgets of all levels in Ukraine, and in 2022 – 20.5 billion UAH.
“Metinvest is a vertically integrated group of mining and metallurgical companies. The group’s enterprises are mainly located in Donetsk, Luhansk, Zaporizhzhya and Dnipropetrovsk regions.
The main shareholders of the holding are SCM Group (71.24%) and Smart Holding (23.76%), jointly managing the holding.
Metinvest Holding LLC is the management company of Metinvest Group.
“Metinvest in January-March of this year reduced steel production by 75% compared to the same period last year – to 491 thousand tons, according to a press release from the parent company Metinvest B.V. on Friday evening.
According to it, pig iron production was also down 75% to 448,000 tons, coke production was down 59% to 318,000 tons, but merchant coke production was up 1% to 213,000 tons.
It is specified that this year the steel and iron smelting was carried out on “Kametstal”. In connection with the beginning of a large-scale military aggression by the Russian Federation against Ukraine, on February 24, 2022, Metinvest decided to suspend the production activities of a number of its enterprises in Mariupol, Avdiivka and Zaporizhia, including Azovstal, Illich Iron and Steel, Avdiivka Coke and Zaporizka Coke. Later, the group’s Zaporizhia companies resumed production. In turn, the assets of the group’s enterprises in Mariupol and Avdyivka suffered as a result of hostilities, while Mariupol is currently under temporary occupation.
It is also reported that the Ukrainian enterprises of the group, except for those located in Mariupol and Avdeevka, continue to operate at different levels of utilization, taking into account security factors, availability of electricity supply, as well as logistical and economic factors
In Q1 2023 iron production increased by 66% q-o-q mainly due to an increase in operating hours of both blast furnaces at MK Kametstal after the plant’s emergency shutdown due to lack of power supply in late November, with gradual resumption in December, as well as stabilization of the situation with power supply since late January. As a result, steel production increased by 96% q-o-q.
Q1 2023 iron and steel production figures are 75% lower than in the same period last year due to the shutdown of the Mariupol mills from the end of February 2022, as well as the transition to operating two blast furnaces instead of three at Kametstal.
In the 1st quarter of 2023 the production of commercial semi-finished products amounted to 282 thousand tons, which is twice as much as in the previous quarter due to the increase of liquid iron production, but 46% less than the same period last year due to the absence of production at the Mariupol blast furnaces from the end of February 2022.
In January-March 2023, the output of finished products increased by 28% quarter-on-quarter to 547 thnd mt. Production of flat products was up by 67,000 tonnes to 285,000 tonnes, mainly due to an increased order book for hot-rolled plates at rolling mills in Italy and the UK; production of long products was up by 53,000 tonnes to 262,000 tonnes due to higher steel production on the back of stabilized electricity supply at Kametstal.
In Q1 2023 production of finished products decreased by 63% compared to the same period of 2022, as flat products output decreased by 828 thousand tonnes – due to the shutdown of Mariupol integrated works from late February 2022, as well as due to the change in order book in favor of hot-rolled thick plates at Ferriera Valsider in Italy. In addition, production of long products decreased by 66 thousand tonnes – mainly as a result of production stoppages at Azovstal from the end of February 2022 and lower finished products output at Kametstal against the background of unstable electricity supplies compared to the same period last year.
There was no production of rail and pipe products, as the products were produced at the Mariupol mills.
In Q1 2023 coke output increased by 12% quarter-on-quarter, the main reason being the resumption of coke production at Kametstal after an emergency shutdown due to a lack of power supply in late November 2022. At the same time, coke output in this period decreased by 59% compared to 1Q2022 due to stoppage of production at Azovstal and AVDKHZ from the end of February 2022.
As previously reported, Metinvest in 2022 decreased steel output by 69% YoY to 2.918 million tons, iron output by 72% to 2.743 million tons, coke output by 64%, to 1.653 million tons, including marketable coke by 49%, to 811 thousand tons.
“Metinvest consists of mining and metallurgical enterprises in Ukraine, Europe and the USA.
The major shareholders of Metinvest are SCM Group (71.24%) and Smart Holding (23.76%) that jointly manage the company.
Metinvest Holding LLC is the management company of Metinvest group.
Metinvest Mining and Metallurgical Group, within the framework of Rinat Akhmetov’s Steel Front military initiative, transferred optics and equipment for 10 million UAH to the National Guard of Ukraine.
According to the company, heavy and dangerous battles continue along the frontline – in order to increase the efficiency of offensive operations and reduce losses of Ukrainian defenders, Metinvest transferred a large batch of optics and equipment worth 10 million UAH.
It is specified that the assistance within the framework of Rinat Akhmetov’s Steel Front militarized initiative was once again received by the unit of the Offensive Guards of the National Guard of Ukraine. Now the soldiers have a number of useful equipment at their disposal: 20 night vision devices, 7 rangefinders, 30 collimator holographic sights and magnifiers for them, 10 binoculars Schteiner, 7 quadcopters DJI MAVIC 3T and FMC, as well as tablets and a laptop. And to increase the mobility of fighters to the front will go be a bus and a pickup truck.
The press service emphasizes that all the devices received are high-tech and of high quality. According to the soldiers, they will help to perform special combat tasks more effectively and with fewer losses.
“With the help of the new rangefinders, we can determine the distance to the targets very accurately at a distance of up to 2 km. And accordingly, we can plan our actions more effectively, and adjust fire to hit all units. So this is a very necessary equipment for us! Most of the enemy have no such devices, they are far behind – both in tactics and in technical equipment. So having these things in service is a great advantage for us. With equipment from the Steel Front, we will destroy the enemy even more effectively, leaving no chance. This is exactly the kind of equipment our troops need to win,” explains the company deputy chairman of one of the offensive units, call sign Leo, who is quoted by the press service.
Despite the fact that this equipment is quite scarce on the market, Metinvest is doing its best to provide the troops with everything they need.
“The night vision devices that we transfer are full-featured devices that meet NATO military standards. Supply of such highly professional military equipment requires approval of documents of permissive nature for movement across the border, control over logistics and transfer itself. We assess the needs and quality of equipment more and more thoroughly with each new request from the military. We are trying to meet specific requirements of defenders, where, due to complexity of centralized supplies, assistance is needed the most”, – comments Alexander Kul, Senior Manager of Mergers and Acquisitions Department of Project Office of Metinvest Group.
Earlier Metinvest delivered a batch of equipment worth UAH 2.3 million to the Donetsk direction. The defenders received six drones, Starlink complex, two EcoFlow batteries, three radios, five night vision devices, as well as gas masks. In total, since the beginning of the full-scale war within the framework of Rinat Akhmetov’s Steel Front militarized initiative, the company has allocated more than UAH 1.6 billion to help the Ukrainian army.
“Metinvest” is a vertically integrated group of mining and metallurgical enterprises. Its enterprises are located in Ukraine – in Donetsk, Lugansk, Zaporozhye and Dnepropetrovsk regions, as well as in European countries.
The major shareholders of the holding are SCM Group (71.24%) and Smart Holding (23.76%) that manage it jointly.
Metinvest Holding LLC is the management company of Metinvest group.
In January-March this year, the mining and metallurgical group Metinvest, including associated companies and joint ventures, paid more than UAH 2.5 billion in taxes and fees to the budgets of all levels in Ukraine.
According to the company’s press release on Wednesday, Rinat Akhmetov’s Metinvest remains the backbone of the country’s economy amid a full-scale Russian invasion of Ukraine.
In January-March this year, Metinvest’s Ukrainian enterprises paid about UAH 725 million in unified social contributions, more than UAH 649 million in personal income tax and about UAH 442 million in income tax.
Land rent – more than UAH 288 mln, subsoil use fee – about UAH 174 mln and ecological tax – almost UAH 136 mln, which are the most significant sources of the state and local budgets of Ukraine.
Director General of “Metinvest” Yuriy Ryzhenkov said that it is not in the tradition of Ukrainians to give up.
“Therefore, the enterprises of Metinvest continue to fill the treasury of Ukraine in extremely difficult military conditions, under the constant threat of enemy shelling. We hold the line on the economic direction, despite the loss of control over the Mariupol plants, the blockade of the ports and other negative factors for the industry. After all, we understand that business must work to win and then to rebuild Ukraine. All as one, because we have one country,” the top manager was quoted by the press service.
As it was reported, taking into account the associated companies and joint ventures, in 2022, Metinvest transferred 20.5 billion UAH of taxes and duties to the budgets of all levels in Ukraine.
“Metinvest is a vertically integrated group of mining and metallurgical companies. The enterprises of the group are mainly located in Donetsk, Luhansk, Zaporizhzhia and Dnipropetrovsk regions.
The major shareholders of the holding are SCM Group (71.24%) and Smart Holding (23.76%) that manage it jointly.
Metinvest Holding LLC is the management company of Metinvest Group.
Mining and Metallurgical Group Metinvest intends to participate in the post-war reconstruction of Ukraine together with the Ukrainian government and Italian business, the company’s CEO Yuri Ryzhenkov said at the April 26 conference on the reconstruction of Ukraine held in Rome with the participation of Ukrainian Prime Minister Denis Shmygal and Italian Council of Ministers Chairman Giorgi Meloni.
According to a press release Friday, during the discussion, Denis Shmygal noted that Ukraine looks forward to Italy’s participation in joint infrastructure, logistics, manufacturing and commercial projects to restore Ukraine from the effects of the war.
“The hundreds of Italian and Ukrainian companies, businesses, associations that are here today are a signal that we have a common interest in the reconstruction projects that, in particular, the president of Ukraine described today. We invite Italian companies to invest in Ukraine and implement reconstruction projects today”, – he said.
The Prime Minister added that Ukraine counts on 1 billion euros from the Italian agency SACE to urgently finance the reconstruction of energy, housing, humanitarian demining, critical and social infrastructure, support for small and medium businesses.
In his turn Yuriy Ryzhenkov said at the specialized metallurgical panel during the conference that Metinvest as a potential steel supplier considers the issues of strategic partnership with Italian companies in Ukraine. In particular, we are talking about cooperation in transport infrastructure (roads, bridges, seaports), energy infrastructure (production and supply of energy), social infrastructure (schools, hospitals, other public institutions).
“Ukraine has lost production of rails and slabs because of the destroyed factories in Mariupol. On the one hand, this is a problem because Italy was a major consumer of Ukrainian slabs. But on the other hand, it is an opportunity for Ukraine’s recovery, as these are the most obvious areas that require investment. One of the first drafts of Ukraine recovery plan, published last year, already contains initiatives in which Italian business may take part. And this is where Metinvest is ready to cooperate with it to implement the plan for Ukraine’s recovery,” the top manager, as quoted by the press service, stressed.
Moreover, Metinvest, in partnership with Italian companies, seeks to improve the technological level of metallurgical production in Ukraine and become part of the green transformation of the European industry. In particular, the matter concerns expansion of DR-okatysh production, the basic raw material for more environmentally friendly metallurgical production with the usage of electric arc furnaces. “Metinvest is considering a partnership with DRI d’Italia, a joint project of InvItalia and CEIP Scarl, a consortium of electric arc furnace steel producers.
However participation in these projects will require additional investments in production capacities. For example, modernization of some of the enterprises and construction of new facilities will require about $6 billion according to the National Recovery Plan developed and presented in mid-2022. Promising investment projects include modernization of iron ore processing technology and construction of DR-forming lines, construction of electric arc furnace facilities and new rolling mills.
In his speech at the conference, Ukrainian President Vladimir Zelensky emphasized that Ukraine has significant potential for the development of green metallurgy. “From iron ore to lithium and other resources that are in maximum demand by the world – all of it is Ukraine. From natural gas to titanium… We can give – and we will! – all that to global markets. In many ways we can replace companies from Russia – those who have chosen to work for war rather than for global development,” he said.
“Metinvest is a vertically integrated group of mining and metallurgical enterprises. Its enterprises are located in Ukraine – in Donetsk, Lugansk, Zaporozhye and Dnipropetrovsk regions, as well as in European countries.
The major shareholders of the holding are SCM Group (71.24%) and Smart Holding (23.76%) that manage it together.
Metinvest Holding LLC is the management company of Metinvest group.
Metinvest’s network of steel service centers in Ukraine, Metinvest-SMC, has donated steel to the Pivden Operational Command as part of Rinat Akhmetov’s Steel Front initiative to manufacture mobile buggy vehicles, which are in high demand at the frontline.
According to the press release, a buggy is a small light vehicle with high cross-country ability with open wheels, used for off-road driving. There are no such vehicles in service in Ukraine. Activists, volunteers and representatives of some military associations manufacture and supply them.
It is noted that buggies are compact, fast, maneuverable, have high cross-country ability and are easily camouflaged. They are relatively inexpensive and are indispensable in reconnaissance missions, able to attack in small groups and make quick raids behind enemy lines. That is why the buggy is a good alternative to a conventional wheeled vehicle on the front lines.
Metinvest-SMC was recently approached by representatives of the UC Pivden: the military needed equipment for the production of buggies. At their request the company provided 3.8 tons of rolled metal – angles, sheets, and tubes – for the manufacture of 10 front minivans, free of charge.
According to the press service, everyone can also help the defenders of Ukraine: if there are any unused old Zhiguli 01-07 cars, they can be transferred to the AFU (Operational Command South in FB or e-mail coll-centr_ok_pivden@post.mil.gov.ua).
It is recalled that Metinvest group has already allocated 1.6 billion UAH for the projects of Rinat Akhmetov’s Steel Front military initiative.
“Metinvest” is a vertically integrated mining group of companies. Its main shareholders are SCM Group (71.24%) and Smart Holding (23.76%) that jointly manage the company.
Metinvest Holding LLC is the managing company of Metinvest group.
