Ukraine has effectively been left without a steel industry, the Financial Times (FT) reported, citing Oleksandr Vodoviz, chief of staff to the CEO of Metinvest Group.
“As of today, Ukraine no longer has a steel industry“, he said.
Last week, the Russian Defense Ministry announced the destruction of a plant in Kryvyi Rih that produced “metallurgical products for the production of weapons and military equipment“. Multiple explosions have also been reported at industrial enterprises in the city since the beginning of the month.
Blast furnaces at three enterprises have been damaged, including two plants belonging to Metinvest Group, as well as an ArcelorMittal plant in Kryvyi Rih. This has led to the shutdown of plants that together accounted for 90% of the country's steel production.
“We don't know at this point how long the repairs will take - days, weeks, months or years”, Wodowitz said. He stressed that the shutdown of these plants, which together employ more than 15,000 people, could have serious consequences for the economy and have a “huge impact on tax revenues”.