The shutdown of major industrial plants threatens the economic stability of key cities
The Ukrainian metallurgical industry is facing its most severe crisis since the start of the full-scale war due to systematic Russian strikes on factories. Blockaded Black Sea ports and infrastructure attacks are jeopardizing the industry's future and the livelihoods of local communities. This was reported by Glavcom citing Le Monde, according to the portal PromPolitInform.
One of the most concerning examples is the ArcelorMittal Kryvyi Rih plant, which employs about 16,000 people. Following strikes in September, management is currently negotiating with the government over the plant’s future, with the possibility of a total shutdown being considered.
For the city of Kryvyi Rih, such a scenario implies significant financial losses and social distress. According to local authorities, steel production accounts for up to 40% of the city budget, excluding related businesses. Head of the Military Administration Oleksandr Vilkul described this prospect as an economic catastrophe for the city.
Crisis of production capacity
Currently, three major industrial facilities in Kryvyi Rih have already ceased operations, while two others are running at only 20-25% capacity. Overall, Ukraine has lost approximately 40% of its steelmaking capacity since the start of the full-scale invasion due to the occupation and destruction of plants in Mariupol.
The year 2026 has seen an intensification of the crisis due to a new wave of Russian strikes. In addition to ArcelorMittal Kryvyi Rih, production has been halted at Zaporizhstal, Kametstal, and Interpipe Steel. Oleksandr Vodoviz, head of the Metinvest CEO’s office, stated that steel production cannot be guaranteed anywhere in Ukraine anymore due to systematic missile attacks on all major plants.
Impact on related sectors
Oleksandr Vodoviz notes that large-scale damage requires massive investment for repairs, with each facility’s recovery costing hundreds of millions of dollars. Production difficulties are compounded by logistical challenges caused by the blockade of Black Sea ports since mid-July, which has significantly limited access to global markets.
The crisis in the metallurgical sector has a cascading negative effect on the broader economy. According to expert estimates, every direct job at a steel plant supports up to eight jobs in transport, energy, and service industries. The decline of metallurgy’s share in Ukraine’s GDP from 12% in 2018 to 5.5% in 2025 indicates a deep structural crisis that has already resulted in the loss of about 35,000 jobs in recent years.
Photo: lemonde.fr
Read also: Why metallurgical plants cannot be relocated
