Changes in the Process of Forming of Production Costs of the Main Technological Chains Under the Separation Conditions in Donbas

Abstract

The article revealed fundamental changes in the structure of production costs of one of the main techno-logical chains of Donbas (coal – coke – metal) under the conditions of partial occupation of Donbas by Russia. A link was found between the formation of the demarcation line, which artificially divided the Ukrainian Donbass according to the Minsk agreements, and economic factors. It is shown that the areas where enterprises with low level of value added dominate the structure of industry remained mostly in the so-called ORDLO (certain areas of the Donetsk and Lugansk regions) temporarily out of control of Ukraine, which allows monopolistic, oligarchic business structures from the Russian Federation and Ukraine to maximize profits by drastically reducing labor costs and dumping social obligations. A way to solve this problem through the nationalization of large industrial assets by the Ukrainian state has been proposed.

Authors and Affiliations

Ie. Sytnyk

Keywords

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  • EP ID EP559191
  • DOI 10.12958/1817-3772-2019-1(55)-33-42
  • Views 61
  • Downloads 0

How To Cite

Ie. Sytnyk (2019). Changes in the Process of Forming of Production Costs of the Main Technological Chains Under the Separation Conditions in Donbas. Науковий журнал "Економічний вісник Донбасу", 1(55), 33-42. https://europub.co.uk/articles/-A-559191