Construction Materials Producers Voice Opposition
The Ukrainian Association of Construction Materials Manufacturers has publicly opposed a new government decree. The mandate, which came into force on March 7, significantly increases the compulsory share of imported electricity for industrial consumers, raising it from 60% to 90%. Association President Kostiantyn Salii warned of potential negative consequences for businesses, arguing that this policy appears punitive for enterprises at a time when the national power grid is stabilizing. This move comes as Ukraine's energy sector is navigating a fragile recovery following wartime damage.
Salii pointed out that while Ukraine has gained the capacity to export up to 400 MW of electricity during certain periods, actual export volumes remain minimal. He expressed concern that Ukrainian electricity sold to the European Union could be re-imported at higher European market prices, creating additional and unpredictable costs for domestic manufacturers.
"Manufacturers must have the right to choose the optimal energy source mix to ensure the competitiveness of their products in both domestic and foreign markets."
Kostiantyn Salii, President of the Ukrainian Association of Construction Materials Manufacturers
Broader Industrial Concerns
Salii further noted that after the active phase of the war concludes, electricity demand is expected to surge sharply due to infrastructure reconstruction, new construction projects, and industrial development. Under these conditions, he stated, state policy should focus on supporting producers rather than imposing additional costs on the sector.
In a related development, the Ukrmetallurgprom association, representing metallurgical enterprises, has also voiced its apprehension regarding the new government decision. It emphasized the critical need for a coherent energy policy to support Ukrainian industry during this period.
The government's ruling has sparked a mixed reaction among industrial players, who are worried about the potential impact on their competitiveness. Mandating a higher share of imported electricity could complicate operations for businesses during a critical period of economic and construction sector recovery. This is particularly significant against the backdrop of Ukraine's anticipated postwar rebuilding efforts. It remains to be seen how the government will respond to business criticism and whether measures will be taken to address the concerns in the energy sector.