KIEV, Jan. 21 - Prime Minster Yulia Tymoshenko on Thursday told Arcelor Mittal to hike wages at its Ukrainian steelmaker by 25% by the end of January or face punishment from the government.

Arcelor Mittal Kryvy Rih, as the steelmaker is known, is the country’s largest producer of steel that employs 30,000 people. The wage hike may cost the company extra $41.7 million in 2010.