Ukraine: Metinvest's Blueprint for Boosting Steel Exports

Metinvest
MetinvestImage Source: Metinvest

Synopsis:

Metinvest Group's CFO outlined strategies at the Export Credit Forum 2023 in Kyiv to enhance foreign-currency earnings from steel exports. The discussed conditions include secure sea shipping, financing for small enterprises, streamlined customs processes, diversified exports, and global product certifications, aiming to transform Ukraine's export focus from raw materials to processed goods.

Article:

Metinvest Group’s Chief Financial Officer, Yuliya Dankova, elucidated pivotal conditions essential for amplifying foreign-currency earnings from steel exports during her address at the Export Credit Forum 2023 in Kyiv on December 1. She emphasized the criticality of safe sea shipping, financial support for small and medium-sized steel consumers, simplified customs procedures, and diversification of the export product range. Additionally, Dankova stressed the importance of facilitating product certifications for Ukrainian exports in global markets.

The forum emerged as a collaborative platform between the government and export-oriented enterprises to foster an open dialogue regarding the development of non-raw material exports from Ukraine. Discussions at the event revolved around financial instruments aimed at bolstering the expansion of Ukrainian products and services on a global scale. Notably, the spotlight was on investment insurance facilitated by the country’s Export Credit Agency (ECA) following legislative alterations, enabling investors to mitigate financial risks.

The forum witnessed the participation of prominent figures, including Ukraine’s First Deputy Prime Minister and Minister of Economy Yulia Svyrydenko, representatives from government bodies, financial institutions, international partners, and various export companies spanning different industries and regions of the country.

The government's vision entails a strategic shift in Ukraine's economic landscape, pivoting from raw materials to processed manufacturing, and encouraging investment in the non-raw material sector alongside stimulating real sector exports.

Yulia Svyrydenko articulated the necessity for transforming export dynamics, aiming to elevate the share of process manufacturing from the current 35% to an ambitious 70-80%, promoting a more balanced export portfolio.

Highlighting Metinvest's significant potential for bolstering exports, Yuliya Dankova revealed the Group's achievement of $1.3 billion in foreign-currency earnings during the initial nine months of the year. She outlined crucial factors contributing to the Group's export augmentation, emphasizing the paramount importance of secure product shipment through the Black Sea, highlighting the need for financial collaboration and prompt receipt of funds for shipped goods.

Furthermore, Dankova stressed the imperative role of facilitating finance for small and medium-sized Ukrainian enterprises utilizing Metinvest's steel products, ensuring stable cash flow for these entities, subsequently fortifying Metinvest as a reliable supplier.

Resolving the complexities surrounding product re-clearance during transit through European nations and expanding non-raw material product groups for exports emerged as essential conditions highlighted by Dankova. Integrating flat and long steel products into the list of high value-added goods supported by the ECA could amplify export opportunities for the Group.

Certification recognition and assistance in certifying Ukrainian products in global markets were emphasized as key steps to enhance the global visibility and acceptance of domestic goods.

Addressing operational challenges and fostering reliability amidst conflicts, Yuliya Dankova urged collaboration between businesses and the government to ensure credibility with Western consumers even during challenging times.

Conclusion:

Metinvest’s articulated conditions at the Export Credit Forum illustrate a comprehensive strategy aimed at amplifying steel exports from Ukraine, outlining crucial prerequisites for enhancing foreign-currency earnings and fostering a paradigm shift from raw materials to processed manufacturing in the country's export landscape.

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