The FMU reminded that the metallurgical industry in Ukraine is already facing numerous challenges. Due to logistical constraints, a decline in global demand, and falling prices for metal products, exports have decreased by nearly 70%. Currently, steel production in Ukraine is at less than 30% of pre-war levels, while iron ore production is below 50%.
"FMU is categorically against increasing the tariff for natural gas transportation. In light of the full-scale war, any further increase in the natural gas transportation tariff will lead to a decline in production volumes, mass layoffs, and the risk of losing a strategically important industry," emphasized the FMU.
Additionally, the federation pointed out shortcomings in the proposed tariff increase, particularly the lack of detailed calculations supporting its economic justification.
"To ensure transparency and openness in the process, it is necessary to publish detailed calculations breaking down the costs of the 'Gas Transmission System Operator of Ukraine,' similar to the structure of tariffs for electricity transmission. The absence of such data complicates comprehensive discussions and hinders the consideration of stakeholders' opinions. Therefore, to achieve a fair and balanced decision, open consultations with industry representatives, sector specialists, and the public must be conducted," the federation stressed.
FMU has also suggested measures to maintain the current tariff, including optimizing expenses for purchasing natural gas for production needs and conducting a detailed audit of the operational costs of the 'Gas Transmission System Operator of Ukraine.' According to the organization’s members, this will help identify inefficient infrastructure facilities and develop a plan for their gradual decommissioning.
"The income norm for the 'Gas Transmission System Operator of Ukraine,' which stands at 18.05%, is unacceptably high in the context of martial law. This figure should be reduced to a level that reflects current realities and ensures a fair balance between the operator's needs and consumer interests. The possibility of temporarily lowering the income norm and maintaining the natural gas transportation tariff at the current level of 124.16 UAH/thousand m³ should be considered to support the country's economic stability," the federation concluded.