One of Ukraine's key industries has almost disappeared from GDP

Before Russia's full-scale invasion, the metals industry accounted for up to 7% of Ukraine's GDP. Now its contribution may be close to zero, according to an estimate by Metinvest, a Ukraine-based international mining and steel group.

Source: Metinvest COO Oleksandr Myronenko in an interview with Forbes Ukraine

Quote from Myronenko: "The metals industry as a whole used to account for up to 7% of Ukraine's GDP. Now it may be close to zero. Those are the losses."

Details: Myronenko said that of the group's mining assets in Ukraine, only the Central and Northern mining and processing plants are currently operating, and only at about 50% of capacity. They produce iron ore pellets and concentrate for export to the EU.

The Southern mining and processing plant is idle because the seaports are effectively closed. The Inhulets plant has been shut since 2024 because of high electricity prices.

At Zaporizhstal (the Zaporizhzhia Steelworks), Russian strikes have effectively broken the production chain. Myronenko estimates that it will cost tens of millions of hryvnias to restore the damaged equipment.

For reference: The metals and mining sector has traditionally been one of Ukraine's largest industries. GMK Center, a consulting company focused on the European iron and steel market, estimates that it accounted for 10.3% of Ukraine's GDP in 2021 and 5.5% in 2025. Last year, mining and metals products also accounted for 15.2% of Ukraine's total goods exports, worth US$6.2 billion.

Background:

• Following a Russian ballistic missile strike on 11 August, Zaporizhstal completely halted operations. In late August, Metinvest said it was not yet possible to determine when the plant could resume operations.
• Ukraine's steel production halved in August. In September, Zaporizhstal was hit by four ballistic missiles, with the damage described as critical.

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