Ukraine is set to lose up to 2.4 billion hryvnias due to declining revenues from the steel industry, which could have serious implications for the country's budget, reports Politeka.net.
According to The Independent, the Ukrainian steel industry has been adversely affected by American trade restrictions imposed by Donald Trump. Recently, the U.S. announced a 25% tariff on imported steel and aluminum, creating new challenges for Ukrainian companies, particularly "Zaporizhstal," one of the largest metallurgical plants in the country, which continues to operate despite ongoing military actions.
Trump justified the introduction of new tariffs by stating that it would "level the playing field" and make American businesses more competitive in the global market. However, for Ukraine, this decision poses a significant challenge, as the steel industry is already experiencing a crisis due to the war and economic difficulties, as noted by Politeka.
As a result of the tariffs, the country could lose 2.4 billion hryvnias in steel export revenues, and the Ukrainian government may face a shortfall of about 1 billion hryvnias in tax revenues annually. The largest contributor to tax revenues is the "Metinvest" group, which accounts for 61% of all taxes from the metallurgical sector. However, with the new tariffs, there may be a reduction in production or even the closure of some enterprises, which would translate into losses for the Ukrainian economy.
Source: independent.