A decline in world prices of rolled ferrous metal and iron ore has affected Ukrainian industrial production / Photo from UNIAN
Industrial production in Ukraine in January-June declined by 20.5% due to higher production costs, low prices of staples exported by the country, and ongoing armed hostilities in Donbas, which undermines Ukraine's industrial potential, according to the Economic Development and Trade Ministry.
The increase in operating costs in the first half of the year was due to higher power rates, gas prices and duties on imports, the ministry said in a report.
At the same time, the Ukrainian industry suffered most from a decline in prices of rolled ferrous metal, iron ore and mineral fertilizers in the world markets.
Another factor affecting the industrial output was lower consumer demand caused by a decrease in real incomes and a reduction in investment activity.
As UNIAN reported earlier, the decline in industrial output in Ukraine in June 2015 slowed to 18.1% year-over-year, from 20.7% recorded in the previous month.
According to the State Statistics Service, industrial production in June 2015 grew by 1.5% compared to May 2015.
Since the beginning of the year, industrial production in January-June 2015 has declined by 20.5% year-over-year.