You're reading: Economic Ministry explains fall in industrial production in April with traffic blockade in Donbas

The acceleration of decline in industrial production in April to 6.1 percent compared to the same month of last year is the result of high sensitivity of the Ukrainian industry to the blockade of freight traffic in the east of the country, which began in late January this year, the Ministry of Economic Development and Trade has stated.

“For the third month in a row, industrial production is showing a drop. As expected, this reflects the industry’s high sensitivity in a short term to the decision to block cargo shipments in the east of the country,” the ministry said.

The ministry specified the reduction in production in metallurgy is connected with the halt from February of the Alchevsk and Yenakiyeve metallurgical plants, Donetsksteel, as well as the seizure by militants of DTEK coal enterprises in the temporarily uncontrolled territory, which formed a deficit of energy resources.

“This explains the decline in industry in April and neutralizes the factor of improving the external environment, namely, the growth of world prices and the expansion of domestic consumer demand,” the agency notes.