Zaporozhkoks, one of Ukraine’s largest coke and chemical producers and a member of Metinvest Group, despite the difficulties caused by Russia’s military aggression, paid over UAH 225 million in taxes and fees to the budgets of all levels in 2023.
According to the company, the average number of employees at the company is about 800, with almost 14% of employees mobilized into the Armed Forces of Ukraine. Since the beginning of the full-scale invasion, eight Zaporozhkoks employees have given their lives for the freedom of Ukraine.
“Despite the full-scale war, Zaporozhkoks has been operating steadily, supporting the economy of our country and hometown. In 2023 alone, the plant produced about 1 million tons of gross coke, which is almost 30% of the total produced in Ukraine,” said Alexander Bekhter, CEO of the plant, as quoted by the press service.
It is also stated that over its 90-year history, Zaporizhkoks has produced almost 120 million tons of gross coke. The company is systematically upgrading its production facilities, including coke oven batteries, improving the quality and expanding the range of chemical products.
In particular, in 2019, a new electrode pitch granulation line was put into operation. In 2020, Zaporozhkoks put into pilot operation a new mini-cooling tower for cooling process water at the tar distillation shop. The company is successfully implementing energy saving projects, including a project to exchange secondary gases with Zaporizhstal.
As reported, Zaporozhkoks increased its blast furnace coke production by 16% in 2023 compared to 2022, up to 856.8 thousand tons from 737.4 thousand tons.
“Zaporozhkoks produces about 10% of coke in Ukraine and has a full technological cycle of coke products processing. It also produces coke oven gas and pitch coke.
“Metinvest is a vertically integrated mining group of companies. Its major shareholders are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage the company.
Metinvest Holding LLC is the management company of Metinvest Group.
The survey, conducted by Active Group in cooperation with the Experts Club think tank, revealed citizens’ attitudes to various aspects of social and economic life in Ukraine, including the initiative to refund part of the cost of Ukrainian goods, the government’s influence on business, the level of trust in law enforcement, financial stability of citizens, and forecasts for the hryvnia exchange rate.
A significant proportion of respondents (44%) have heard of the initiative to refund the cost of purchasing Ukrainian goods, with opinions divided on its impact on living standards. Most respondents believe that the government will increase taxes to finance this initiative.
According to Andriy Yeremenko, founder of the sociological research company Active Group, this raises concerns among the population, as most are not ready for an increase in the fiscal burden.
The study also revealed a deep distrust of government institutions (57% of citizens) and law enforcement agencies (62%) in the context of relations with business, in particular due to the lack of transparency and efficiency of their work. The majority of respondents believe that the state hinders rather than helps business to develop, and this trend has increased compared to previous months.
A significant number of Ukrainians (up to 60%) are experiencing financial difficulties, including increased debt and lack of savings for a rainy day. Respondents also expressed concern about the future of the hryvnia exchange rate, with the majority (55%) expecting it to fall.
In the context of utility bills, the vast majority (67%) of respondents believe that the level of tariffs is too high, which further emphasizes the general dissatisfaction with the financial situation and government policy in this area.
According to Oleksandr Poznyi, Director of Active Group, these results demonstrate the serious challenges faced by Ukrainian society in the context of the war and the current economic situation.
Earlier, Maksym Urakin, the founder of the Experts Club think tank, noted that in 2024 Ukraine’s public debt may exceed GDP for the first time, which poses significant risks to economic stability in the country.
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ACTIVE_GROUP, ANDRIY_EREMENKO, ECONOMY, EXPERTS_CLUB, OLEXANDR_POZNYI, POLITICS, SOCIOLOGY, TAXES, URAKIN
Last month, Naftogaz Group companies paid UAH 5.3 billion in taxes, which is 17.8% more than in February 2023.
According to a report on Naftogaz’s website, the company paid UAH 4.8 billion to the state budget and UAH 0.5 billion to local budgets.
In total, since the beginning of 2024, the group has paid UAH 11.4 billion in taxes to the state.
As reported, in 2023, Naftogaz Group companies paid UAH 90.2 billion in taxes, UAH 83.4 billion of which went to the state budget and UAH 6.8 billion to local budgets.
Metinvest Group’s Kametstal plant, which was set up at the facilities of Dnipro Metallurgical Plant (DMK, Kamianske, Dnipro region), increased its tax and fee payments by 34.8% in 2023 compared to 2022, to UAH 2.154 billion.
According to a press release, despite the economic, logistical and energy challenges of operating under martial law, Kametstal increased its tax revenues last year compared to 2022. At the same time, the budget of the city of Kamenskoye received almost UAH 605 million. The regional and state budgets received more than UAH 1.549 billion.
Kametstal’s most significant sources of revenues to the budgets of various levels are: a single social contribution of over UAH 401 million; land tax of over UAH 364.5 million; and personal income tax of UAH 352.5 million last year.
In addition, almost UAH 156.5 million of income tax and more than UAH 154 million of environmental tax were transferred to the treasury in 2023.
KAMETSTAL’s Chief Financial Officer Sergey Polukhin noted that despite the trials and tribulations of wartime, KAMETSTAL, along with other Metinvest Group companies, remains a stable producer of steel products important to the country’s economy and a responsible taxpayer.
“Today, the plant is also a reliable pillar of Kamenskoye’s economy and the largest donor to the city budget. The funds contributed by the enterprise significantly help to maintain the stability of salary payments to employees of the city’s utilities, ensure the operation of hospitals and other city programs. We work together for Ukraine and Ukrainians,” said the CFO.
It is also noted that in 2023, including associates and joint ventures, Metinvest Group paid UAH 14.6 billion in taxes and fees to the budgets of all levels in Ukraine. The rejection of tax benefits that the company is entitled to under the law made it possible to allocate additional funds to those areas where it is needed most.
As reported, in 2022, Kametstal paid UAH 1.598 billion in taxes and duties, which is higher than in 2021.
“Kametstal was created on the basis of Dnipro Coke Plant (DKKhZ) and Central Metallurgical Plant (DMK) of PJSC Dnipro Metallurgical Plant.
According to the 2020 report of Metinvest Group’s parent company, Metinvest B.V. (Netherlands) owned 100% of the shares in DCCP.
The Bureau of Economic Security (BES) has ensured that the state budget receives more than UAH 13.4 million in taxes refunded by a Lviv-based holding company that includes 60 restaurants and retail outlets, the bureau’s press service reports.
According to the report, the investigation found that the holding’s employees received their salaries in two installments, one of which was paid through shadow registers. During the pre-trial investigation, the BES detectives conducted a series of searches, interrogated the company’s employees and collected the necessary evidence.
In addition, the Bureau initiated a tax audit to determine the correctness of the company’s tax and fee payments. As a result of the audit, an additional UAH 13.4 million in taxes and fees were accrued, the press release said.
“The company’s director pleaded guilty at the pre-trial investigation stage. The company has paid to the state budget the damages caused to the state in full. The person involved in the criminal case was served a notice of suspicion of committing criminal offenses under Part 2 of Article 212, Part 3 of Article 212-1 of the Criminal Code of Ukraine,” the Bureau said.
According to the BES, the case has been sent to court. The pre-trial investigation was conducted by detectives of the BES territorial office in Lviv region. Prosecutors of the Lviv Regional Prosecutor’s Office are in charge of the proceedings.
As reported, on October 17, 2023, the BES announced the exposure of a large-scale tax evasion scheme in Lviv by a holding company that includes 60 restaurants and retail outlets. On the same day, Yuriy Nazaruk, co-owner of the !Fest holding, reported that the BES and the Security Service of Ukraine conducted searches at one of the holding’s sites in Lviv. According to him, the searches were related to the holding’s business activities, but there were no requests or appeals from law enforcement officers in connection with criminal cases.
The !Fest holding was founded in 2007. It develops a network of creative restaurants, cafes, shops and real estate in Ukraine. Its owners are Andriy Khudo, Yuriy Nazaruk, and Dmitry Gerasimov.
In 2023, bun and cookie producers paid taxes worth UAH 2.6 billion, which is UAH 0.4 billion or 17.7% more than a year earlier, Danylo Hetmantsev, chairman of the parliamentary committee on finance, tax and customs policy, said on Telegram.
According to the report, the leaders in paying taxes and financing the Ukrainian Armed Forces among bun and cookie producers in 2023 were Vinnytsia Bakery No. 2, Dnipro Food Concentrates Plant, Stolychnyi Mlyn, Dnipro Mlyn, and Kviten Confectionery.
“These producers have a higher VAT and income tax burden than the industry average, and at the same time covered a fifth of tax revenues,” summarized the chairman of the parliamentary financial committee.
