Industry needs support for strong defense of Ukraine – Metinvest top manager
Industry is the basis of defense, and Ukraine needs a new ecosystem to develop its mining industry. A strong defense is impossible without a powerful economy, and industry is the foundation of that economy, Serhiy Skorbun, head of the external projects coordination department of the Metinvest CEO's office, said at the first annual international forum United by Mining, which was held in Kyiv.
According to him, using Ukraine's abundant minerals and processing them into high-value products will provide the state with financial stability and the ability to support the army.
"The mining industry has a powerful effect on the economy. One job in mining creates four jobs in other areas. Now, the entire economy works to support defense. Therefore, Ukraine must develop an ecosystem that views the mining industry not only as a source of resources, but also as a foundation for production, attracting capital and creating globally competitive products," Skorbun noted.
He believes this ecosystem should include predictable and adequate tariff and tax policies. The state should also engage in trade diplomacy to defend the interests of Ukrainian producers in foreign markets.
Additionally, businesses need access to domestic resources.
"We need to think about how to make long-term loans more accessible and affordable, and how to improve Ukraine's credit ratings to make financing cheaper," the top manager added.
He also mentioned the shortage of qualified personnel as an issue: "We are experiencing an acute shortage of personnel. The army needs mobilization, but the economy that supports it must also function. A balance is needed."
One of the main obstacles to economic development is logistics. The inefficiency of state monopolies creates additional risks and costs for businesses.
"Ukrzaliznytsia incurs about UAH 20 billion in losses from passenger transportation every year. This is a state-defined social function. If this decision is made, we must be honest and say that the state ordered it and will pay for it. Otherwise, we must frankly admit that we cannot afford such a volume of services and delegate the task of reducing losses through optimization and increased efficiency. The most important thing is not to hide the problems," Skorbun believes.
Metinvest consists of mining and metallurgical enterprises located in Ukraine, Europe and the USA. Its main shareholders are the SCM group (71.24%) and Smart Holding (23.76%). Metinvest Holding LLC is the management company of the Metinvest group.