Ukrainian Prime Minister Volodymyr Groysman after visiting Mariupol Illich Steel Works (Donetsk region), part of Metinvest Group, and talking to management has ordered that ministries and agencies discuss the problems the mining and metal companies and hold a special meeting.

Metinvest said in a press release that the Prime Minister attended the sinter plant reconstruction site – the largest environmental project in the history of independent Ukraine (at the end of five years of the project the total investment will comprise $220 million).

In the course of the meeting the group’s and enterprise management drew attention of the prime minister to the infrastructure problems encountered by the iron and steel works in Mariupol: Mariupol Illich Steel Works and Azovstal. The discussion touched upon the possibility to increase the throughput capacity of Polohy–Kamysh-Zoria–Volnovakha railway section, which would facilitate an increase the volumes of raw materials supply to Mariupol and finished goods shipments from Mariupol significantly.

The steel makers also mentioned the need to deepen the waters of Mariupol seaport to open the possibility to receive large vessels.

During his visit to Mariupol Illich Steel Works, Groysman instructed the Economic Development and Trade Ministry to arrange an ad hoc meeting involving the executives of the Infrastructure Ministry and Ukrzaliznytsia, as well as other ministries and departments in order to discuss the state policy in the field of support to the mining and metals sector.

Groysman noted that there was also the issue of rising railway tariffs by Ukrzaliznytsia.

"I want us to sit at a round table and clearly discuss the problems to be resolved in order to expand the product range and export capabilities, rather than the decline production. Exports for us are of utmost importance," he said.

He said that the development of domestic infrastructure projects could stimulate related industries, including metallurgy. In this regard, he noted the importance of Metinvest Group’s investments in modernization of the production facilities, adding that the metallurgy was an industry, the development of which was absolutely necessary. Groysman also promised to render assistance by the government in terms of strengthening competitive ability of the Ukrainian companies with export potential.

"The modernization program at the enterprise gives us confidence that the environmental situation in Mariupol will start improving already in 2017. Within five years, the emissions to the atmosphere will meet EU standards. This development should be welcomed. I would like Ukraine to switch from raw materials-based economy to high added-value economy. During our visit to Mariupol, we saw, where the national produced (wealth) is being created. We will do everything possible to stimulate business, so it attracts investments for the construction of new capacities and national wealth," Groysman said.

Chief Executive Officer of Metinvest Group Yuriy Ryzhenkov said that despite challenges the group continues investing in development of its production facilities.

"During 10 years, the company has invested $5.5 billion in production. We intend to continue the modernization emphasizing environmental safety. The support from the government is crucial. Without the government’s assistance in the area of fair pricing policies for state monopolies and resolving infrastructure problems, steel producers will have extremely hard time competing in international markets and developing their production facilities," he said.

Metinvest Group is a vertically integrated group of steel and mining companies that manages every link of the value chain, from mining and processing iron ore and coal to making and selling semi-finished and finished steel products. It comprises steel and mining production facilities located in Ukraine, Europe and the US, as well as a sales network covering all key global markets.