Ukraine's steel industry has been brought to a near standstill following a series of Russian missile attacks on the country's metallurgical facilities, according to a BBC report shared by Ukrainian mining and steel producer Metinvest, which is based on interviews with industry representatives and Ukrainian steel producers.
Zaporizhstal, operated by Metinvest, has been forced to suspend operations indefinitely after four attacks in August and September. According to Metinvest chief operating officer Oleksandr Myronenko, Russia fired a total of 17 missiles at the plant, killing eight employees and injuring 31. The attacks caused extensive damage to production equipment, buildings and blast furnaces. Myronenko stated that Metinvest is currently clearing debris and assessing possible recovery plans, although it remains uncertain whether Zaporizhstal will be able to restart.
An attempt to resume operations was unsuccessful, with a restarted furnace operating for only around 10 hours before another air strike, according to Metinvest head of the CEO's office Oleksandr Vodoviz.
Metinvest currently has no steelworks in operation
According to the report, all of the country's remaining steel plants have since August been targeted, some of them multiple times. Myronenko said Metinvest, previously Ukraine's largest steel and iron producer, currently has no steelworks in operation. ArcelorMittal Kryvyi Rih also announced on September 25 that it had been unable to restart operations following repeated attacks over a five-week period. Five employees were reported to have been killed.
The disruption has significant implications for Ukraine's economy. Before Russia's full-scale invasion in 2022, the mining and metallurgical industry accounted for approximately 10 percent of the country's GDP and one-third of its exports, while more than 500,000 people were employed directly or indirectly by the sector. Myronenko estimated that the industry's current contribution to Ukrainian GDP is “probably close to zero.”
Ukraine's steelmaking base had already contracted substantially before the latest attacks. The country had 12 metallurgical plants before the conflict with Russia began in 2014, falling to nine by 2018 and six by 2025. The facilities lost during this period included Metinvest's Azovstal and Ilyich Iron and Steel Works in Mariupol.
Railway and port attacks create additional logistical difficulties
The prolonged shutdown of steel plants could also severely affect the finances of steelmaking cities. In addition to production disruptions, Ukrainian steelmakers are facing growing logistical difficulties. Russian attacks on railway infrastructure have complicated domestic transportation, while strikes on ports have increased risks for steel exports.
Myronenko stated that port operations have effectively been blocked due to the risks faced by vessels. Meanwhile, the EU's new steel import quotas, which entered into force on July 1, could add further pressure on Ukrainian steel exports, according to the report.
The continued shutdown of steelmaking capacity could also affect Ukraine's reconstruction and defense needs, given the importance of steel for military equipment, shelters and the repair of damaged infrastructure. With the security situation remaining uncertain, Metinvest indicated that major spending on restoring damaged production facilities cannot yet be justified.
