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

Journal: Quarterly Scientific Journal "Economic Herald of the Donbas" (Vol.55, No. 1)

Publication Date:

Authors : ;

Page : 33-42

Keywords : structure of production costs; technological chains; reducing labor costs; dumping social obligations; level of value added in the value of production; economical symbiosis; cheap labor reservations; demarcation line.;

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Abstract

The article revealed fundamental changes in the structure of production costs of one of the main technological 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.

Last modified: 2019-06-23 04:55:55