Since September of last year, «Ukrzaliznytsia» has stopped selling scrap metal, which came as a surprise to the market and dealt a blow to businesses. With the temporary loss of control over the eastern territories, the dependence on railway deliveries has increased. At the same time, both «Ukrzaliznytsia» and the state budget are losing out on the funds from the sale, according to the Center for Transport Studies.
This decision by «Ukrzaliznytsia» has caused a stir in the market and has left many businesses scrambling to find alternative solutions for their scrap metal needs. The sudden halt in sales has not only affected the businesses, but also the railway company and the state budget.
The sale of scrap metal has been a significant source of income for «Ukrzaliznytsia» and the state budget. In fact, in 2019, the company earned over 1 billion hryvnias from the sale of scrap metal. This revenue has now been lost, and it is estimated that the company will suffer a significant financial loss as a result.
The decision to stop selling scrap metal was made due to the ongoing conflict in the eastern territories of Ukraine. With the loss of control over these territories, «Ukrzaliznytsia» can no longer guarantee the safety and security of the railway tracks and infrastructure. This has led to a decrease in the number of trains running in these areas, resulting in a decrease in the amount of scrap metal collected.
While this decision may have been necessary for the safety of the railway company and its employees, it has had a significant impact on the market and businesses that rely on the sale of scrap metal. Many businesses have been forced to find alternative ways to dispose of their scrap metal, which has resulted in increased costs and logistical challenges.
Moreover, the state budget is also feeling the effects of this decision. With the loss of revenue from the sale of scrap metal, the government will have to find alternative sources of income to make up for the shortfall. This could potentially lead to budget cuts in other areas, affecting the overall economy.
However, it is important to note that this decision by «Ukrzaliznytsia» was made in the best interest of the company and its employees. The safety and security of the railway tracks and infrastructure should always be a top priority, especially in times of conflict.
In the long run, this decision may also have a positive impact on the market. With the decrease in the amount of scrap metal being sold, the demand for it may increase, leading to higher prices and potentially benefiting both «Ukrzaliznytsia» and the businesses that rely on it.
In conclusion, the decision by «Ukrzaliznytsia» to stop selling scrap metal may have come as a surprise to the market, but it was a necessary step to ensure the safety and security of the railway tracks and infrastructure. While it may have caused some short-term challenges for businesses and the state budget, it could potentially have long-term benefits for the market. It is important for all parties involved to work together to find alternative solutions and mitigate the impact of this decision.
