The Cabinet of Ministers of Ukraine plans in 2013 and 2014 to provide state support worth UAH 10 billion via a government guarantee mechanism to realize projects on the modernization of the mining and metal sector.

This is stipulated in the State Economic Stimulation Program for 2013-2014, which was enacted by cabinet resolution No. 187 dated February 27, 2013 and published on March 25, 2013.

The government plans that the measures will promote an increase in the production of metal and mining products and implement social projects of some territories.

Additionally, it is proposed that Ukrainian enterprises will be exempted of paying import duty if they import equipment and spare parts for it that are not made in the country and that will be used in the re-equipment of production facilities of mining and metal, engineering and light industry companies.

The government plans that in 2013 a set of measures on provision of the Ukrainian market with scrap metal will be designed and approved.

The government also included the plans of Interpipe to build the second phase of the steel-smelting complex at Interpipe Steel in Dnipropetrovsk in 2014, which will boost exports of pipes by 700,000 tonnes worth at least $700 million, ensuring additional payments to the budget of over UAH 200 million a year and creating 595 jobs. The government will grant guarantees for raising UAH 1.54 billion.

In addition, the plans for 2014 include the creation of high-strength pipe production facilities at Interpipe Niko Tube (Nikopol, Dnipropetrovsk region). It is expected that this will incerase exports of pipes by $125 million a year and replace imports of similar pipes in the volume of 100,000-130,000 tonnes a year (at least $200 million in current prices), providing additional payments of over UAH 110 million a year to the national budget and creating 225 additional jobs. The government will issue guarantees worth UAH 750 million.

The plans for 2013 include the creation of a modern casting and rolling complex and corresponding production infrastructure at private joint-stock company Donetsksteel iron and steel works, which will increase production by UAH 900 million a year, creating 1,549 new jobs, reducing consumption of natural gas for production of rolled steel from 120 to 15 cubic meters per tonne and reducing emissions by 3.5 times. The government will issue guarantees worth UAH 9 billion.