Zaporizhstal and Kametstal steel plants halted after missile strikes
Ukraine's metallurgical industry has found itself on the brink of survival due to russian shelling of enterprises, the blockade of sea ports, and export restrictions to the European Union. According to Metinvest COO Oleksandr Myronenko, the company has exhausted its pre-war safety margin and is forced to cut costs and personnel. This is reported by the portal PromPolitInform, citing information from Metinvest, based on data from Forbes.
In August and September, russia launched massive ballistic missile strikes on the Kametstal and Zaporizhstal steel plants, causing the facilities to halt operations. The attacks killed 13 people and injured over 40 employees and contractors. Restoring the damaged production assets will require tens of millions of dollars.
Consequences of the Ukrainian Port Blockade
The blockade of maritime routes has halted the export and import of raw materials, particularly coal, which was previously delivered via the port of Greater Odesa. Due to the suspension of operations at enterprises in Pokrovsk, the company is forced to import about 250,000 tonnes of coal per month by rail or through European ports, increasing logistics costs by 50–60%. In addition, the Pivnichny and Central Mining and Processing Works are currently operating at only 50 percent capacity.
Internal Logistics and Tariff Issues
Additional pressure came from rising tariffs on domestic rail freight and a shortage of locomotives near the frontline. «Ukrzaliznytsia is essentially shooting itself in the foot: the more they raise tariffs, the less efficient they become»
, Oleksandr Myronenko noted. According to him, the industry needs special recovery funds similar to the energy sector and international support.
Anti-Crisis Measures and the EU Market
The European market remains the only available export destination due to expensive logistics to other regions, but since April the EU has introduced quotas limiting supplies to half of last year’s volume. Production costs have increased by approximately 30 percent due to higher logistics and electricity prices. To keep the company afloat, management is planning large-scale administrative staff reductions and cost optimization.
Illustrative photo: Serpen wiki woker. Source: 1. Промышленность России. – М.: Госкомстат России. – 1996. – С. 164. 2. Russia in the Minerals Yearbook, years 1994 – 2022 [1]. 3. World Steel in Figures 2024, World Steel in Figures 2025, World Steel in Figures 2026 [2]. / CC BY-SA 3.0
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