Metal blow: How Russia destroys the leading sector of Ukraine's economy

How many metallurgical plants have lost Ukraine during the war", Ukrainian metallurgy has not suffered great losses due to Russian aggression for the first time. Dmitry Churin, Director of the Analytical Department of the Investment Company, reminds that in 2014-2015, as a result of the occupation of part of the territory of Donetsk and Luhansk regions, Ukraine lost control of such metallurgical enterprises: the losses affected the potential of the industry.

On the eve of 2013, Ukraine ranked tenth in the ranking of major world producers, smelting 32. 824 million tons. In 2021, production decreased to 20. 6 million tons, which corresponded to the 11th place in the global rating. The full -scale Russian invasion in 2022 caused a new, even greater blow to the metallurgical sector. "Metallurgy has lost one third of assets. Both metallurgical plants in Mariupol -" MMK them. Illich "and" Azovstal.

Moreover, those industries that continue to work even in the war, they significantly reduced production volumes. According to Oleksandr Kalenkov, the President of the Association of Ukrmetalurgprom, in 2022, compared to the pre -war period, the load of metallurgical plants fell by an average of 85%.

Dmitry Gorununov names such enterprises in the industry that continue to work: in particular, in the Metinvest group reports that for 9 months of 2022 production began to decreased by 62%compared to the same period last year. The stop of Mariupol metallurgical plants was partially offset by the group thanks to the Kametstal enterprise.

And the company "ArcelorMittal Kryvyi Rih" reported that due to the reduction of export capabilities and restriction of energy supply, the enterprise in 2022 was loaded by no more than 20-25%, and the production level fell five times. That is, only 1. 2 million tonnes were smelted instead of the planned 5. 1 million tons. In general, the market is also a reduction in steel production several times. The OP "Ukrmetalurgprom" specifies that for 2022, 6.

3 million tons of steel were produced in Ukraine, which is only 30% of the 2021. With regard to the results of the industry before the occupation of Donbass as of 2013 is only 19. 2%. The volume of steel production in Ukraine due to Russian aggression in the last eight years has declined more than fives "the loss is really significant, but the reason is not only in damage to the production capacity of enterprises.

After all, metallurgy is a very energy -intensive industry, which also depends on the logistics And this is now big problems, "-concludes Viktor Shulik, Director of the Department of Project Management of RA" III-Rating ". That is, energy terrorism and blockage of seaports for metallurgical exports actually seek the industry that has historically made a significant contribution to the country's GDP. Meanwhile, the state budget does not receive a significant amount of tax revenues.