Russia is burying another branch of Ukrainian industry that contributed eight percent of GDP
The Ukrainian chemical industry is on the verge of complete collapse, writes the Ukrainian Week magazine.
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“The country is flooded with cheap imports of mineral fertilizers from the Russian Federation, against which domestic chemists can do nothing. The fact is that Russian producers actively dump, having access to cheap raw materials, while Ukrainian producers do not have such an opportunity. The result of this unexpected expansion of Russian goods could be a complete stop of our chemical industry and the destruction of the industry,” the publication notes.
The publication recalls that in recent years a new tradition has developed in Ukraine: to be proud that the country no longer buys Russian gas. But at the same time, UT points out that upon closer examination, things are somewhat different.
“After all, gas is the main raw material used by producers of mineral fertilizers. So, cheap Russian fertilizers are still the same gas. Only it comes to Ukraine not in its pure form, but as a component of Russian chemical industry products. Natural gas makes up about 80% of the cost of nitrogen fertilizers. And since the Russians have their own and are cheap, they produce inexpensive fertilizers. A Ukrainian manufacturer will compete with such products only if the state helps it and introduces special protective duties. If in Russia chemical industry enterprises can buy gas for $70 per 1 thousand m³, then in Ukraine the price for chemists is several times higher,” the magazine writes.
“More recently, the chemical industry provided about 8% of Ukraine’s GDP, but now it is under threat of complete stop and destruction. And what is surprising is that there is much less noise around this situation than around the recent blockade of ORDLO, although the country’s national interests suffer no less in this case. The fading chemical industry not only leads to a decrease in exports and foreign exchange earnings, but also forces Ukraine to pay for the supply of fertilizers to the Russians. Which leads to an outflow of currency from the country, as well as an increase in unemployment,” laments the author of the publication.
The publication claims that the reason for this situation was the collusion of the Ukrainian agricultural lobby with Russian corporations, which ultimately led to the abolition of anti-dumping duties.
“Of course, cheap fertilizers are really beneficial to the Ukrainian agro-industrial complex and can increase the profitability of agricultural enterprises. But the price for such a benefit could be the collapse of the Ukrainian chemical industry. This means that Ukraine will lose several more large capacities and gain a foothold in the status of an agricultural country. It is difficult to imagine a more welcome gift to our enemies. But, unfortunately, Ukraine makes this gift with its own hands, without coercion. And the consequences of such mistakes can be catastrophic,” UT concludes.
As PolitNavigator reported, due to the blockade of Donbass a major Ukrainian city will lose this year a third of your budget.
See also: Sowing season is disrupted in Ukraine due to the shutdown of the chemical industry.
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