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Some 22 out of 32 refineries to start sugar-making season in Ukraine due to war, expensive energy – expert
KYIV. Aug 16 (Interfax-Ukraine) – The key problems of the sugar industry in Ukraine are the Russian military invasion and the abnormally high price of natural gas, which exceeded the EU level of $2,000 per 1,000 cubic meters.
As a result, 10 out of 32 Ukrainian sugar refineries will not start the sugar-making season in September, according to the website of PJSC Gnidava Sugar Refinery (Lutsk).
"This year we have two problems – the war and the price of energy. In Europe, gas already costs more than $2,000 per 1,000 cubic meters. If the Gnidava sugar refinery worked only burning gas, then every day we would have to give at least 400 tonnes of sugar for gas alone, despite the fact that the plant will produce 600-700 tonnes per day in total, and we also need to pay off beet growers, pay wages to people to serve the business," the company quotes its Deputy Director Oleksandr Nikishyn.
According to him, the commercial price of natural gas in Ukraine is currently such that it is not economically feasible to launch a refinery, since each kilogram of sugar produced on this gas only brings losses.
"We do not give up and set ambitious goals for ourselves. Firstly, to receive raw materials from our beet growers and process them. And the second important task is to save the production team, because the closure of the refinery for one season will also lead to equipment damage, and, accordingly, more severe consequences for the enterprise," Nikishyn said.
