Ukrainian steelmaker ArcelorMittal Kryvyi Rih (AMKR) will implement budget cuts following the shutdown of major steel and iron ore enterprises in the city, as falling industrial activity weighs on local tax revenues, according to Oleksandr Vilkul, chairman of the Kryvyi Rih's defense council.
The decision follows the suspension of operations at ArcelorMittal Kryvyi Rih amid Russian attacks. According to Vilkul, the steel plant has faced four heavy missile attacks over recent weeks, resulting in severe damage, while five employees were killed and 17 were injured.
Several major mining and steel operations are halted
In addition to ArcelorMittal Kryvyi Rih, operations have been halted at the Ingulets Iron Ore Mine, Southern Iron Ore Mine and Kryvyi Rih Iron Ore Combine, Vilkul stated. Other major enterprises in the city are operating at no more than one-quarter of their pre-war production levels.
According to Vilkul, the difficulties facing the sector are primarily related to Russian attacks and logistics constraints, particularly the inability to ship products through ports. The disruption has also affected contractors and other companies whose operations depend on the city's mining and steel sector.
Lower tax revenues force city to reconsider spending
The shutdowns are expected to significantly reduce tax revenues for Kryvyi Rih, prompting the city authorities to abandon some planned major projects. However, funding for educational institutions, hospitals and critical infrastructure will be maintained.
Vilkul said the budget outlook for next year is particularly difficult and described the current priority as maintaining the city's essential functions rather than pursuing development projects.
ArcelorMittal announced on September 25 that it was unable to resume safe operations at its Kryvyi Rih plant. The future of the facility is being discussed with the Ukrainian government, while the company is focusing on maintaining the plant's infrastructure.
