In Ukraine, more than 90 percent of industrial enterprises will become unprofitable due to the increase in gas prices

15.10.2021
In Ukraine, more than 90 percent of industrial enterprises will become unprofitable due to the increase in gas prices

In Ukraine, 91% of companies operating in the industrial sector will become unprofitable in October due to the rise in gas prices. In November, their number may reach 96%. This is stated in the results of a study by the Federation of Employers of Ukraine (FRU), published on its website.

The Federation of Employers of Ukraine conducted a survey, in which 100 companies-consumers of natural gas, operating in 20 industries, took part. According to the survey, 49% of respondents plan to halt production or reduce its volumes if the gas price remains at the October level or increases. Already in December, due to the emergence of a cash gap, lack of credit and the need for prepayment for natural gas, the overwhelming majority of the surveyed companies may stop.

At the same time, they say in the FRU, given the gas price that developed in January-July of this year, the above-mentioned enterprises were profitable.

About 90% of the surveyed enterprises do not have the technological ability to replace natural gas with other energy resources and an action plan in case of termination of its supply.

97% of respondents say that the practice of concluding long-term contracts for the supply of natural gas with a fixed price of the resource, as in the EU, should become a key factor in protecting consumers from rapid price fluctuations, ensuring the predictability of the cost of products of the Ukrainian industry and its competitiveness.

“It is impossible to build a competitive economy when the gas price for Ukrainian enterprises is 4-5 times higher than that of their competitors. ceramics industry, agricultural processing ", - said in the message of the FRU.

Already now, Ukrainian producers are forced to respond to the rapid rise in the price of natural gas. As a result, the next wave of growth in prices for the final products of all Ukrainian manufacturers in all industries will take place.

"Therefore, ordinary Ukrainians will have to pay for the extraordinary rise in the cost of gas by the final cost of the products of Ukrainian food producers (in such sensitive positions as bread, cheese, sugar, etc.), medicines and other goods, which can create additional social tension in society. And many will lose jobs due to the closure of enterprises, "- says the study of the FRU.

In the absence of urgent steps on the part of the Ukrainian authorities to stabilize the situation with the price of natural gas for the industry, one should expect a reduction in workers at enterprises, the closure of companies and a decrease in revenues to the budgets of different levels, they are sure in the Federation of Employers.

Source: https://www.belta.by/

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