One of Ukraine's key industries almost disappears from GDP

Before Russia's full-scale invasion, the metals industry accounted for up to 7% of Ukraine's GDP. Metinvest, an international mining and steel group headquartered in Ukraine, now estimates its contribution may be close to zero.

Source: Metinvest Chief Operating Officer 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: He said that, of the group's mining assets in Ukraine, only the Central and Northern mining and processing plants are currently operating, though 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 seaports are effectively closed. The Inhulets plant has been shut since 2024 because of high electricity prices.

At Zaporizhstal (Zaporizhzhia Steelworks), Russian strikes have effectively broken the production chain. Myronenko estimated that restoring the damaged equipment would cost tens of millions of hryvnias.

For reference: Ukraine's mining and metals sector has traditionally been one of the country'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 is 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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