Friday, February 24 2017 20:25 EET
Estimated losses of Metinvest due to blockade changed downwards from 30 to 10 million dollars
Estimated, Losses, Metinvest, Dlockade, Changed, Downwards,  From 30, 10 million,  Dollars

The Dragon Capital investment company reconsidered the level of potential monthly loss for the Dutch company Metinvest B.V. due to the coal and iron ore transportation blockade on the Eastern Ukraine – the loss changed downwards from 30 to 10 million dollars. This was reported by Interfax-Ukraine.

According to the primary assessment originated from the excessive pessimistic estimation of the group’s capacity to redirect the sales of the raw iron ore to the other markets. According to the investment company, the current iron ore price increase may help Metinvest to substitude their metallurgy business to the ore mining and partially fill in the margin from steel production.

According to Dragon Capital the apprehended loss in the new assessment will not affect Metinvest’s ability to serve their debts.

As we reported earlier this week, Yenakiieve Metallurgical Plant and Krasnodon Ugol (Luhansk region) from the Metinvest Group, on the territories beyond Ukraine’s control, closed down operations due to continuous military activities and the railroad blockade in the area of the anti-terrorist operation.

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