Ukraine loses its steel industry: three largest plants shut down

Ukraine has effectively lost its steel industry — the country’s three largest metallurgical plants, which accounted for 90% of steel output, have been shut down following strikes.

This was reported by the Financial Times, citing Alexander Vodoviz, head of the office of the CEO of the Metinvest holding.

“As of today, Ukraine no longer has a steel industry,” Vodoviz told the Financial Times.

The plants in question are located in the Zaporizhzhia and Dnipropetrovsk regions. Two of the three shuttered plants belong to Metinvest, and the third to ArcelorMittal. According to Vodoviz, blast furnaces at the plants have been damaged. The timeline for restoration is not yet known: the top manager acknowledged that repairs could take anywhere from several days or weeks to months or years. The three plants employ more than 15,000 people. Their shutdown may also lead to a reduction in tax revenues, the newspaper notes.

In August, ArcelorMittal Kryvyi Rih had already reported damage to key energy and blast furnace facilities following a missile strike and a partial suspension of operations. Russia’s Ministry of Defense stated at the time that the army had struck workshops at the plant where steel rolled products were manufactured for the production of weapons and military equipment for the Ukrainian Armed Forces. The ministry emphasized that it strikes military, energy, and related infrastructure targets in Ukraine.

In May, ArcelorMittal Kryvyi Rih announced a reduction in capacity due to disruptions in raw material supplies. By that point, the plant had already shut down one of its two blast furnaces, two sintering machines, an ore enrichment facility, and part of its other operations.

Metinvest’s chief operating officer Alexander Mironenko had previously stated that the contribution of the metallurgical sector — which before the conflict had accounted for up to 7% of Ukraine’s GDP — had fallen to nearly zero. According to him, the industry has lost part of its capacity and faced logistical problems, while the decline in domestic production has been accompanied by a rise in imports of metal products.

The Ukrainian government estimates possible losses in tax revenues from damage to enterprises and infrastructure at approximately €1.3 billion, FT reports. Prime Minister Serhiy Koretsky had previously stated that the country’s public finances are close to a critical state, and that the additional defense budget deficit for 2026 amounts to approximately €23.5 billion.

Russian President Vladimir Putin has described strikes on targets in Ukraine as “effective and timely,” stating that they help the military accomplish its objectives at the front. According to the president, Russia’s army actions are “far more sensitive and destructive” than those of the Ukrainian Armed Forces. In July, Putin stated that responses to Ukrainian strikes on Russian territory would be mirror-like and several times more powerful.