12 May 2015
Metinvest Group has been having regular problems with receiving VAT refunds from the government.
Metinvest Group has been experiencing regular problems with VAT refunds from the government since late 2014. The government’s debt to the Company currently stands at UAH 3.571 billion, including UAH 868 million accrued so far in just May 2015. Specifically, the government’s debt to Ilyich Iron & Steel Works of Mariupol is UAH 757 million, to Azovstal – UAH 700 million, Zaporizhstal – UAH 396 million, Northern Iron Ore Enrichment Works – UAH 232 million and Central Iron Ore Enrichment Works - UAH 203 million.
The lack of timely VAT refunds to the Group inhibits timely payments to suppliers of electricity and gas and the ability to fulfil its commitments to international creditors and contractors.
Production dropped significantly in 1Q 2015: steel output by 39%, iron ore concentrate by 16% and coke by 31%.
- For editors:
METINVEST is a vertically integrated mining and metallurgical group of companies that manages assets in each segment of production chain, from extraction of iron ore raw materials and coal, as well as coke production up to manufacture of steel semi-finished and finished products, pipes and coils and also manufacture of other high-value-added products. The Group incorporates mining and metallurgical enterprises located in Ukraine, Europe and USA and has sales network covering all global key markets. Metinvest Group incorporates Metallurgical and Mining Divisions. According to the strategic vision of Group it is aimed to become the leading European vertically integrated steel manufacturer with sustained growth and profitability, despite the cyclical nature of markets, and provide investment yield above the industry standards. In 2014, the Group gained $10.5bn in revenues, with its EBITDA margin making 26%.
The main shareholders of METINVEST B.V. (holding company of the Metinvest Group) are SCM Group (71.24%) and Smart Holding (23.76%) that manage the company at partnership relations.
Metinvest Holding LLC is the managing company of Metinvest Group.