consent to an assignment for the metallurgy sector, the government has not gained control over the pricing of raw materials and finished products of MMC within the country. However, neither Ukrzaliznytsya or railway engineering industry does not want to stay away from the success of metallurgists and intend to seek the abolition of the memorandum.

in the Cabinet again talking about the need to extend the MOU to charge chemical and metallurgical industries of natural monopolies (remember, it will expire on Jan. 1, 2010). For has already expressed the Prime Minister and the Ministry of Industrial Policy. However, positive trends in the sector of MMC, were noticed by analysts since the beginning of the third quarter, gave impetus to discussions on the feasibility of providing these benefits. The initiator of the information wave has once again become the Administration of Railway Transport Ukrzaliznytsya, which feels almost more than any other participant in the restoration of profitability of metallurgical enterprises.

According to Acting Transport Minister Vasyl Shevchenko, for the duration of the memorandum between the government and the enterprises of MMC (from September 2008 to July 2009) Ukrzaliznytsya subsidized the past almost 386 million UAH. that resulted in a similar shortfall in the revenue the carrier (it's - about tenth of total income, which is scheduled to get Ukrzaliznytsya in the current year).

However, according to the operative data of consultancy Management Consulting Group (ICG, is engaged in research for Ukrzaliznytsya), losses from the provision of benefits is even more - on a quarterly basis, they reach 300 million UAH. until the end, the amount of available discounts freight by rail to the MMC can make 562,3 million UAH. About 37% of the savings from the memorandum metallurgists gives it the railroad - celebrated in the study of ICG.

Note in the first quarter support the railroad and other natural monopolies, and with commitments for assistance under the memorandum, did not save the domestic MMC from losses. According to the Association Metallurgprom, the cumulative loss of metallurgical industry in the first half of 2009 amounted to 4,2 billion UAH. Analysts also see no obvious direct relationship between indicators of iron and steel industry and the action memorandum. The reduction of rail fares has played in restoring the profitability of enterprises GMK, of course, important but not the first role. Steelmakers have survived only through exports, restoring supplies to Asia, particularly China, as well as to the markets of the Middle East and Europe, - says Dragon Capital analyst Sergey Gajda. Alignment indicators industry experts have noticed in June: this month, almost all metallurgical enterprises managed to take profits.

As noted Sergey Gaida, for the third quarter the industry should reach profitability of 10-15% in terms of EBITDA. But for the first nine months of profitability will still be negative - on average about 12% since the third quarter will not be able to block significant drop in income at the beginning of the year, - analyst Dragon Capital.

In Ukrzaliznytsia still believe that the yield of metallurgists in profitability allows us to speak about the loss of a memorandum relevance.

reap success metallurgists want not only the railway, but the company transport engineering. You can not give the benefits of one industry at the expense of others - the director of the Association of Equipment Manufacturers of railway infrastructure Oleg Melnik. The basis for such claims had been laid in the same memorandum: discounts metallurgists Cabinet positioned including as a tool of influence on pricing in the market of metal inside the country.

In particular, MMC has committed itself to reduce the price of the metal in the domestic market (after the collapse in the construction of virtually the only customers inside the country remain the company transport engineering and rail infrastructure).

However, according to the study of ICG, the prices not only declined, but increased for some items, and still exceed exports. The domestic market now takes only 12-15% of the total supply metpredpriyatiy, and therefore not a priority for them. Moreover, given the low cost of logistics Ukrainian metal still remains competitive in the country. The relevance of the memorandum to the next year, analysts say has not yet taken. It is unknown what will happen to the market and demand. However, we need to support industry, which now brings the only currency in the country. Then all will work - and metallurgy, and railroad workers, - says the head of the Department of Mining SE Derzhzovnishinform Vladimir Pikovsky.

spite of everything, not likely to heed the Cabinet today, the arguments of all interested in the abolition of discounts: on the eve of the election advantageous to the Government still friends with most solvent business, Kojima is now the MMC.

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