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| Metinvest |
Industry Revival Dependent on Stability and Investment Conditions
The recovery of Ukraine’s war-torn steel industry depends on international security guarantees, according to Yuriy Ryzhenkov, CEO of Metinvest Group. In an interview with Reuters, he stated that the company cannot undertake large-scale investment projects without stable conditions for long-term planning.
“We need to see what sort of conditions will be agreed to for a ceasefire or peace deal, and what sort of guarantees will be provided so that business can start investing again,” Ryzhenkov said.
At the beginning of 2022, Metinvest was producing approximately 14 million tons of steel annually, contributing 10% of Ukraine’s GDP. However, the full-scale Russian invasion led to the loss of key facilities, including Azovstal and Ilyich Iron and Steel Works in Mariupol, along with a coke plant in Avdiivka. In January 2025, Ukraine’s only coking coal mine was forced to close due to the advancing front line.
Adapting to New Realities and Future Prospects
Despite significant setbacks, Metinvest has adapted to the evolving landscape. In 2024, the company produced 2.1 million tons of steel, marking a 4% increase from 2023. Pig iron production also rose by 3% to 1.82 million tons. A moderate production increase of 3-5% is forecasted for 2025.
To reduce energy dependence, Metinvest is investing in solar panels and gas generators. Additionally, the company is developing a green steel project in Italy and exploring potential mergers and acquisitions in Central and Eastern Europe. However, long-term investments in Ukraine remain uncertain.
“We were investing billions in Mariupol and were prepared to invest even more, hoping that the Minsk agreements would stop the aggression. But then it all got destroyed in a matter of a few months. None of the agreements were obeyed,” Ryzhenkov emphasized.
To restore Ukraine’s steel industry, real security guarantees are essential. These measures will not only protect domestic industries but also play a crucial role in attracting foreign investment.
According to Ryzhenkov, Metinvest’s main challenges in 2025 include securing financing for modernization and green transition projects, as well as maintaining stable demand for Ukrainian steel in the domestic market. The company also requires a delay in the implementation of the Carbon Border Adjustment Mechanism (CBAM) to ensure competitiveness.
