“We are entering a peak”: more than 90% of Ukrainian industrial enterprises are unprofitable – Kiev expert
The latest statistics on Ukrainian industry already show a minus due to rising gas prices, so many enterprises may not live to see the situation stabilize.
Viktor Skarshevsky, an analyst at the Growford Institute, stated this at a press conference in Kyiv, a PolitNavigator correspondent reports.
“The latest statistics on industrial production for September have already been released. That's it, the industry has already shown a minus, almost -1%. Structure: chemistry – a significant minus, the food industry, processing showed a minus, and textiles, as well as light industry, were generally almost -20%. I’m talking about September 2021 – by September 20. That is, without seasonality, but a correct comparison. The Odessa port plant stopped working with us even earlier.
And the Federation of Employers of Ukraine conducted a survey among enterprises in 20 industries - more than 90% become unprofitable. And if they become unprofitable, then bankruptcy is not far away; no one experiences long-term losses. And this means layoffs, an increase in unemployment, an additional burden on the budget through the payment of benefits, subsidies, and so on. That is, we are entering a serious peak from this energy crisis,” the analyst said.
“At the same time, I haven’t heard a word, any idea from the government, from our authorities, but what to do with industry, it’s on its own - “the market will settle everything.” The market may simply destroy everything if energy prices remain so high for a long time.
The duration of these high prices is very important here, because since this is a speculative component, it may go down at some point, but many enterprises may not survive until this moment,” Skarshevsky added.
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