OREANDA-NEWS. Metinvest Group has been having regular problems with receiving VAT refunds from the government.

Metinvest Group has been experiencing regular problems with VAT refunds from the government since late 2014. The government’s debt to the Company currently stands at UAH 3.571 billion, including UAH 868 million accrued so far in just May 2015. Specifically, the government’s debt to Ilyich Iron & Steel Works of Mariupol is UAH 757 million, to Azovstal – UAH 700 million, Zaporizhstal – UAH 396 million, Northern Iron Ore Enrichment Works – UAH 232 million and Central Iron Ore Enrichment Works - UAH 203 million.

The lack of timely VAT refunds to the Group inhibits timely payments to suppliers of electricity and gas and the ability to fulfil its commitments to international creditors and contractors. 

Production dropped significantly in 1Q 2015: steel output by 39%, iron ore concentrate by 16% and coke by 31%.