Odessa Port Plant may resume normal operations
Odessa Port Plant (Ukraine) may soon leave behind so-called tolling scheme and get back to normal, said Deputy Head of the State Property Fund of Ukraine Sergey Ignatovsky.
The plant has been using the tolling scheme for several years in a row. Within its framework, the raw materials supplied to the plant (natural gas), as well as finished products (ammonia and urea) are the property of the supplier, while the plant receives payment for processing services only. The traditional scheme, in which the plant buys raw materials for its money, and then sells finished products, is considered more profitable, and it is planned to return to it in the future. But at the moment the plant is not ready for this yet.
According to Sergei Ignatovsky, first of all, the enterprise needs to sort out the debts, which reach $ 350 million. This debt is supposed to be restructured and the debt repayment schedule to be approved. Only after this, the enterprise will have free money that can be spent on the purchase of gas.
In the next 4-5 months, Odessa Port Plant will operate on a tolling basis. In particular, the company is now waiting for the results of the tender for a supplier, which was announced at the end of January. The deadline for submission is February 24.