The industry requires dedicated state support programs and war risk insurance
Ukraine risks losing 5 billion dollars in export revenue as large steel plants cease operations. Experts predict that the metallurgical industry could fully halt steel production by 2027. This was reported by Glavcom citing GMK Center, according to the portal PromPolitInform.
The critical situation in the metallurgical sector has worsened following a series of missile strikes on key facilities. Specifically, ArcelorMittal Kryvyi Rih is currently focused on preserving its infrastructure, as current security conditions prevent stable operations.
State of production facilities
Oleh Krykavskyi, the company’s director for government relations, stated that consultations are underway with the government regarding the fate of the workforce and potential state aid mechanisms. He noted that even if the security situation improves, fully restarting the plants would take several months to several years.
Industry expert forecasts
According to GMK Center estimates, steel production in 2026 could range between 4.3 and 5 million tonnes. However, production dropped to 100,000–150,000 tonnes in September, creating a risk of a total industry shutdown in October. In addition to export losses, the state may need to spend approximately 1.5 billion dollars on importing metal products for domestic consumption.
Mechanisms for industrial recovery
To stabilize the sector, experts propose creating a dedicated support fund, similar to those used for energy, which could attract 200–400 million dollars to repair equipment. Concurrently, Ivan Us, a lead consultant at NISS, emphasized the importance of documenting losses in the Register of Damages and targeting international aid specifically toward industrial reconstruction.
Photo: agronews.ua
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