The participants of the meeting stated that as of the end of the year 2010, the terms of the agreement have been executed on a timely basis and in the defined scope. The following investments were made: USD 207,95 million into mining industry; USD 151,86 million into iron and steel making; USD 150,83 million into modernization of production, ecological and energy-saving equipment. Moreover, extra investments in the amount of USD 44 million were attracted in the year 2010.
Analyzing the social component of the company´s activity, the Committee members stated that its privatization did not entail downsizing: as of 01.07.2005, there were 35 003 working places, while as of 31.12.2010, this figure totaled 35 964. The wages of the company staff are growing: in 2010 only, the rates of remuneration and salaries increased by 11,43%; 2% and 2,57%. In 2010, the company put in commission two residential houses for 164 apartments, and opened a new health center; while two more houses for 285 apartments will have been built by the end of 2011. The personnel of the company are provided with medical insurance.
The People´s Deputies drew attention to the increase of voluntary contributions of the company for the social projects of Kryvyi Rih for the past three years. In 2008 they totaled UAH 6,3 million, while in 2010 UAH 15 million.
However, the members of the working group are concerned about the growth of government´s liability to the Arcelor Mittal Kryvyi Rih OJSC for the uncompensated VAT and advance corporation tax. As of 31.12.2010, the sum of the uncompensated VAT totaled UAH 2,3 billion, while the advance corporation tax UAH 1,2 billion. The total sum of government´s liability to the company (UAH 3,5 billion) equals the volume of the salary fund of entire personnel for a year and a half, and exceeds the income of the company for the last year in three times.
The members of the panel decided to address the executive authorities with a request to settle the government´s liability to the Arcelor Mittal Kryvyi Rih OJSC.