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wind and biogas creating 4,500 MW of capacity, according to the State Energy Efficiency Agency. Today, with the future of ‘green tariffs’ unclear, some renewable projects have been halted.
9.1.11 ​Metallurgy & mining sector news
China’s economic slowdown and dropping demand for steel, pushed Ukraine’s November steel production down 21% y/y, to 43,800 tons. ​“This is the lowest level of steel output in the modern history of Ukraine’s economy,” Alfa’s Blinov writes, citing flash data from UkrMetalurgProm, Ukraine’s steel association.
Ukraine’s parliament voted on January 16 to raise the rate for the mineral resource royalty for iron ore mining to 11-12% from 8%, according to a draft bill dated January 13 to update Ukraine’s tax code. The 11% rate will apply if the monthly average of the IODEX 58% Fe CFR China index is below $70/t. Otherwise, the 12% rate will apply. Importantly, in the final available version of the bill the proposals from the earlier versions to change the base for the royalty payment from raw (before enrichment) ore to the price of final products (concentrate,
pellets, sinter) was removed.
9.1.12 ​Other sector news
President Zelenskiy signed a law abolishing the state monopoly on hard alcohol production.​ Effective Jan. 1, the law is designed to end illicit production of alcohol and to open the door for privatization of Ukrspyrt, the state alcohol production company. Although half the company’s 80 distilleries are not functioning, the government believes it will raise $200mn through privatization.
With medical tourism growing, the average spending by foreign patients grew by almost one-third last year, to $2,800,​ estimates Ihor Torsky, vice president of the Ukrainian Association of Medical Tourism. Torsky talked to reporters to promote the Global Medical Tourism Forum Healthcare Travel Forum 2020, which will take place in Kyiv city and Lviv region on April 22-25.
60​ UKRAINE Country Report​ February 2020 ​ ​www.intellinews.com