Metallurgy's contribution to Ukraine's GDP may have fallen to almost zero - "Metinvest"

Before the full-scale invasion, metallurgy provided up to 7% of Ukraine's GDP, while now its contribution could be close to zero. This assessment was voiced by the Chief Operating Officer of the Metinvest group, Oleksandr Myronenko, in an interview with Forbes Ukraine.

"Metallurgy in general provided up to 7% of Ukraine's GDP. Now it could be around zero. These are the losses", - stated Myronenko.

According to him, of the group's mining and processing plants, the Central and Northern GZK currently operate at about 50% capacity. They produce pellets and high-quality iron ore concentrate, which the company sells to the European Union.

At the same time, the Southern and Inguletsky GZK are not operating.

For comparison, according to GMK Center, the entire mining and metallurgical complex of Ukraine in 2021 provided 10.3% of the country's GDP, and by the end of 2025 - 5.5%. Last year, GMK products accounted for 15.2% of Ukrainian merchandise exports, or $6.2 billion.

The situation in the industry sharply deteriorated in recent months against the backdrop of Russian strikes on large metallurgical enterprises. After the ballistic strike on August 11, Zaporizhstal completely stopped production. At the end of August, Metinvest reported that it is currently impossible to determine the timeline for restoring the plant's operations.

In August, steel production in Ukraine fell by 57.3% year-on-year. In September, Zaporizhstal again suffered a ballistic strike: four missiles hit the enterprise's production site. Metinvest reported critical damage, while the plant has not yet restored production after previous attacks.

Source: GMK Center, Metinvest, GMK Center