Lysychansk Soda: gas supplies reduced again

Since 1 July 2003, Lysychansk Soda (Lysychansk, Luhansk region), the second largest soda ash producer in Ukraine has reduced output of soda ash by 48% from 580 tons a day to 300 tons a day due to gas …

Since 1 July 2003, Lysychansk Soda (Lysychansk, Luhansk region), the second largest soda ash producer in Ukraine has reduced output of soda ash by 48% from 580 tons a day to 300 tons a day due to gas supply restrictions. According to a source at the plant, gas supply to the Lysychansk Soda Plant is restricted and occasionally ceases altogether, bringing production to a halt. The root cause of the restricted supplies is the plant“s UAH 9 million liabilities. Lysychansk Soda had come to an agreement with gas supplier Haz Ukrainy, a subsidiary of state-owned Naftohaz Ukrainy, about the restructuring of liabilities and a plan to pay off its debts, but continuing financial difficulties obliged it to diverge from the terms of the agreement. At the end of February 2003, Haz Ukrainy said it intended to cut off gas supplies to 39 debtor companies, which had not paid for gas consumed in 2001-2003. Haz Ukrainy is the major gas trader in the Ukraine.