The situation of the largest steel producer in Ukraine

Before the war, the steel mill produced 40% of Ukraine’s entire steel production and was the key asset of the country’s largest employer, Metinvest. Now, its owner has an important role to play in the parallel battle to support the economy through the other factories outside the occupied territory, says its chief executive, Yuriy Ryzhenkov.

The Azovstal steel plant in Mariupol has become one of the symbols of the brutality of Russia’s invasion of Ukraine.

He declares „In my personal opinion, the people who are now at our steel mills are just as important to Ukraine’s victory as the soldiers on the front line.”

The company has adapted to operating in a war zone, but at least 153 Metinvest employees have died in the fighting.

Beyond keeping money flowing into the economy, the metals and mining group plays a direct role in the war effort. Delivering steel for 1,500 bulletproof vests per week to the Armed Forces of Ukraine. And importing military equipment such as drones and night vision helmets.

Before the war, Azovstal had 35,000 employees, producing 9.5 million tons of steel per year – two-thirds of Metinvest’s output. Everything stopped. Given the scale of human lives lost, it can be unsettling to talk about everyday business matters. Ryzhenkov says that Metinvest’s production this year will fall by at least 60% compared to 2021.

It is estimated that 50,000 of Metinvest’s employees still work in the country. Two more blast furnaces in Zaporizhzhia and the northern town of Kamianske are operating at approximately 50% and 60% capacity, respectively. Most of the products reaching European markets or ports. The iron ore mining facilities in Ukraine operate with a capacity of approximately 35-40%. And a coking coal mine is at about 75%.

Steel production – Metinvest from Ukraine

Ukraine’s largest steel producer, Metinvest, said it was concerned that Russia could use several ships stuck in Mariupol to „steal and smuggle metal products” belonging to the group. He accused Russia of piracy.

Also, Rinat Akhmetov, the owner of Metinvest, plans to sue Russia for the destruction of his assets. Demanding „proper reimbursement of all costs and lost income”.

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