"Mutual understanding" with Cabinet of Ministers cost to Akhmetov almost 120 million dollars

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By results of three months of performance by Metinvest group of conditions of the Memorandum of understanding which was signed in November between the Cabinet and the enterprises it is mountain - a metallurgical complex of Ukraine, company loss from reduction of prices of iron ore raw materials for the Ukrainian consumers for the period November 2008 - January 2009 was made by 119,9 million dollars.

About it reports a press - "Metinvest" service:

"Group cooperation Metinvest and a number of the Ukrainian consumers of iron ore raw materials, in particular JSC Zaporozhstal, MMK of Ilyich and ISD corporation is carried out within the long-term three-year contracts signed at the end of December, 2007.

These contracts provide pricing taking into account use of a world index of the change in price for a concentrate which is traditionally used annually since April 1. Such approach corresponds to the best world practices.

In the conditions of substantial increase of the price of metal rolling in 1 half-year 2008, such contracts allowed metallurgists to reach essential financial results. In the second half of the year the situation considerably became complicated sharp decline in demand and, as a result, essential reduction of prices of steel products.

Considering a difficult economic situation in metallurgical sector of economy, in the company the decision to make advances wishes of consumers in Ukraine and to recommendations of KMU and since November, 2008 to pass to the monthly statement of additional conditions on long-term contracts taking into account changing market conditions was made. In particular contract prices for ton of a concentrate were reduced more than twice - from 120 dollars for ton to 55-50 dollars for ton.

By results of three months of work in new conditions on long-term contracts of loss of Metinvest from reduction of prices of iron ore raw materials for the Ukrainian consumers for the period November 2008 - 2009 was made January by 119,9 million dollars.Dzerzhinsky - 12,2 million dollars, with Alchevsk Metallurgical Plant - 49,7 million dollars, with combine "Zaporozhstal" - 26,2 million dollars, with MMK to them Ilyich - 31,8 million dollars.

"We are sure that dating of all is mountain - metallurgical budget forming branch which are carried out by Metinvest Group, will help the Ukrainian enterprises to endure the difficult period of economic instability - Igor Syry, the Director general of JSC Metinvest Holding, - In a difficult situation of world crisis noted, we consider to help all enterprises of branch, even if it is contrary to our interests necessary. In the conditions of crisis our paramount task - not only to keep the qualified personnel capacity of the enterprises of MMC of Ukraine and to create conditions for prompt return on former market positions, but also for their essential expansion".

"Metinvest" - international vertically - integrated it is mountain - the metallurgical company. Is a part financially - the SKM industrial group. Capacities of the enterprises of Metinvest allow not only to satisfy completely own needs for raw materials, liquid steel and semi-finished products, but also to provide considerable part of the Ukrainian and European enterprises, and also metallurgy of Asia.

JSC Metinvest Holding - Group management company Metinvest.

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