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Reduced overheads due to lower gas prices will help improve performance of Ukrainian enterprises. Profitability of companies may grow by the end of 2014, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.
The decision to cut gas prices, which was achieved in Moscow during the 6th meeting of Ukrainian-Russian Interstate Commission, will let Ukrainian industry focus on raising profitability. According to Valery Muntiyan, Government Commissioner for cooperation with Russia, CIS countries, Eurasian Economic Community, and other regional associations, reduction of gas prices nearly by one-third will ensure growth of profitability of Ukrainian industry. Metallurgy, agro-industrial complex, engineering, and chemical industry will be the first to rise.
"In general, increasing profitability of enterprises will ensure further industrial upgrade and new industrialization of the country," said Valery Muntiyan.
Trough cheaper gas, enterprises in those sectors will be able to actively develop and soon will be able to reach the level of healthy price competition. Experts say Ukrainian industry and AIC can become the worthy players on the world markets.