The largest Ukrainian mining and processing plant is shut down due to the blockade of Donbass
Due to the blockade of railway communication with Donbass, one of the largest mining and processing plants in Ukraine - Northern Mining and Processing Plant - stopped half of the pelletizing machines.
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This was reported at the enterprise, noting that this will not only cause a deterioration in the enterprise’s production performance, but could also lead to a significant reduction in jobs in Krivoy Rog.
As previously reported in the media, the ongoing blockade will cause big problems for enterprises not only in the uncontrolled territory of Ukraine, but also in its controlled part.
“There will be a rapid drop in employment in Mariupol, Avdeevka, Krivoy Rog, Kamensky (metal plants, their suppliers and contractors), which will have catastrophic consequences for socio-economic stability in the industrial cities of the country and will cause a sharp decline in socio-economic stability in Ukraine as a whole.” , - said the president of the association of enterprises “Ukrametallurgprom” Alexander Kalenkov on this occasion.
Kalenkov also said that the blockade would cause a drop in production at two metallurgical giants of Mariupol (Azovstal and Ilyich Iron and Steel Works) by at least 20%.
In this case, Ukraine will lose its place in the top ten steel-producing countries and reduce its export potential without the possibility of recovery over the next two years. In such conditions, forced reduction of employees of metallurgical enterprises is inevitable. In frontline Mariupol alone it will amount to over 3000 people. The implementation of Mariupol development programs will also be at risk, since more than a quarter of the city budget comes from taxes from local metallurgists.
As previously reported, the blockade of the railway will hit the entire industry of Ukraine, which will inevitably lead to a fall in the exchange rate of the hryvnia due to a sharp decrease in foreign exchange earnings. The mining and metallurgical complex brings in a quarter of all foreign currency in the country.
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