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Saturday, March 17, 2018

The economy of new Russia shows a clear recovery

Industry DNR uses less than half of its capacity, officials said in Donetsk. Hampered not only by the civil war and the blockade from Kiev, but falling prices in the global steel industry. However, there are a number of signs that Kiev announced a blockade is already broken, and the economy of the unrecognized republics shows a clear recovery.

Industrial enterprises of the Donetsk national Republic (DND) in terms of the blockade by Kiev and the war using less than half of capacity, said on Tuesday, acting Minister of industry and trade DND Alex Granovsky.

“Now over Ukraine – and then this rate needs to remain already in the Donetsk Republic. Next is our railway service road

“Today industrial companies use from 1 to 40% of their production capacity, and it allows enterprises struggle to stay afloat,” – said Granovsky. According to him, this is due to the continuing fighting, the blockade from Kiev, shrinking markets and problems with supply of raw materials. “Most of the enterprises located in the territory of the Republic, – excess capacity, – he said, RIA “Novosti”. – Typically, this is the legacy left by the Soviet Union, but even being on the territory of Ukraine, worked more than 50% for export. Now we are limited”.

Granovsky named priorities of development of enterprises of metallurgical and machine-building complex, as they will be able to provide a large number of jobs and the greatest income to the budget.

“Among the enterprises of mechanical engineering about 50% were damaged by shelling from the APU, in the chemical and pharmaceutical industry of the order of 10-15%, in the steel of the order of 20-25%. In General, the shelling damaged about one third of enterprises,” he said. Granovsky noted that some enterprises are still in the vicinity of the front, which makes it impossible to resume their work.As the Donbass is getting closer to Russia

The head of the Ministry acknowledged that some companies have to restore it. “A number of businesses destroyed, looted and for one reason or another can not be reversed. For example, there is a company in Donetsk Tochmash. It so happened that a piece of equipment cut out by looters and there is no way this company run, so it will be eliminated, ” he said.

The restoration of those, which is still possible to establish need at least a year, but it’s all possible only with the complete cessation of fire. “It should have a lot of puzzles. This cessation of hostilities, the lifting of the economic blockade by Ukraine, certain benefits from Russia, attraction of highly qualified specialists. Again markets,” said Granovsky.

Only when a comprehensive ceasefire can, for example, to resume the work of the enterprise “Stirol” in Gorlovka, says Granovsky. As you know, concern “styrene” is included into chemical holding Ostchem Group, controlled by Group DF of Dmitry Firtash. The plant in Gorlovka was considered one of the largest chemical plants in Ukraine. It refers to potentially hazardous. In may 2014, Ostchem announced the suspension of the release of ammonia, its derivatives and other products of the company in connection with the desire “to eliminate all risks for staff and residents of the region.” Press Secretary of concern Paul Brykov warned of environmental catastrophe if the Ukrainian security forces continue shelling of Gorlovka.

“Styrene” before the war, formed 40% of the budget of the Donetsk region. This is a huge liquid enterprise. Run – and will work, but is on the boundary line. If it starts and runs ammonia through the pipeline, God forbid, there is something fall, it would be a disaster worse than Chernobyl”, – said Granovsky.

As you know, in November 2014 President of Ukraine Petro Poroshenko signed a document called “decree on economic blockade”: with the uncontrolled territory of Donbass, he told me to bring state institutions, banks and even prisons. Payment to the inhabitants of the region of pensions and salaries to workers of budgetary sphere Kiev stopped even earlier – from mid-summer. Since April of last year, the authorities of the self-proclaimed DND and LNR began to pay the pension, but from may – and public sector wages.

Crises superimposed on one another

Industry of Donbass prevents not only the blockade, but in the world crisis in metallurgy, says the expert of Donetsk Denis Seleznev. “Ukraine in economic terms, she is bent, in particular electricity consumption last year fell by nearly 20 percent. Accordingly, it reduces the consumption of what it produces – coal, production of metallurgical plants. Here’s an example: there’s yenakiieve iron and steel works of Mariupol and near the plant named after Lenin. So trade in Mariupol dropped by more than Enakievo, although the first is on the Kiev-controlled territory and the second in the DNI. Reason – in the world greatly decreased metal prices”, – he said the newspaper VIEW.

The myth that of the DNI and LC are cut and shipped the entire industry, from time to time actively exploiting the Ukrainian press, reminds Seleznev, adding that in fact, the decree Poroshenko is not entirely valid, the blockade has long been broken.

“An example of the enterprises of “Metinvest”, which enters into SKM group of Rinat Akhmetov, shows that industrial enterprises remain in place and the majority of them continues to work. Who can, who works. There is a diagram, for example, when the Ukrainian enterprise gives like equipment rental company, which was here. But this scheme is not as advertised,” – said Seleznev.

By the end of last year managed to restore the railway connection through a major hub like debaltseve, interrupted by the fighting, said the expert. “We have improved export of coal. Kiev has ceased so to shout loudly that never will be nothing to buy “from the hands of the separatists.” In the end, the industry of the DPR since the beginning of the year showed rapid growth, the local economy has opened up positive prospects, – says Seleznev. – But then the Ukrainian side was a new “zrada”. Ukrzaliznytsia has ceased to accrue salaries to railway workers, led rolling stock, and by may, stopped again a railway again came to a standstill, many businesses”.

“Trains now go across the front line”

If the Ukrainian side is not blocked the railway, it would be all right, Granovsky says the newspaper VIEW.

“Train now pass through the front line. But what is the question? Kiev takes with their business rail fare from the place of departure to place of arrival. For example, at Enakievo metallurgical plant. And it should be different. It ended with Ukraine – and then this rate needs to remain already in the Donetsk Republic. On our railroad service road, provide cargo delivery, security. But Kiev does not pay our people, telling that supposedly let you DNR pays” – outraged the acting Minister of industry and trade.

However, still the Republic continues to develop, says the head of the Ministry. “Here on the former site of Donetsk electrometallurgical plant will create the state enterprise “Hughes electrometallurgical plant”. This enterprise, on the Foundation which once even had the Donbass. It is important economically and socially interesting event. Within two to three months will be the first metal spill. First trial batch. Then it will be clear when the plant will work in full force. There will be about seven hundred jobs,” – said the head of Ministry of industry and trade.

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