2019-05-10T18:29:00+03:00 Economy 2023-11-15T08:13:04+02:00

Ukrainian news

Ukrainian news

Kolomoiskyi: Iron-Ore Mining Rent Too Low

Kolomoiskyi: Iron-Ore Mining Rent Too Low

Businessman Ihor Kolomoiskyi believes that the “rent” on mining iron ore is too low.

Kolomoiskyi stated this in an interview with the RBK Ukraine publication, the Ukrainian News Agency reports.

"Ukrnafta sells at an auction – a domestic auction – at a price similar to the market price and the rent [on extraction of crude oil] is 28%. For [businessman Rinat] Akhmetov, the rent [on mining iron ore] is 1% or 1.5%. Do you remember that they did not want to raise the rent on iron ore in 2014? He pays a rent of USD 1 or 2 per ton while Ukrnafta pays USD 150... As a result, he earns eight times more per ton of a similar product than I do. Why such a rent imbalance?" he said.

Kolomoiskyi estimated Akhmetov's profit margin on sale of iron ore at 400%.

However, he said that he did not consider this as an injustice.

As Ukrainian News Agency earlier reported, the parliament increased the rate of the “rent” for extraction of iron ore from 8% to 8.8% in November.