Key facts
- Russia's missile strikes have devastated Ukraine's steel industry, a key sector contributing significantly to GDP and exports before the full-scale invasion.
- The Zaporizhstal steelworks, employing 8,500 people, shut down indefinitely after suffering extensive damage from 17 Russian missiles.
- Eight workers were killed and 31 wounded at Zaporizhstal during the attacks.
- ArcelorMittal Kryvyi Rih, Ukraine's largest steelworks, also announced it could not reopen after repeated attacks.
- The damage to the metals industry could lead to hundreds of thousands of job losses and significant migration.
- Taxes from steel companies previously funded 30-70% of local government spending in their host cities.
Russia's sustained missile campaign has inflicted severe damage on Ukraine's steel industry, a critical sector for the nation's economy and employment. The Zaporizhstal steelworks in Zaporizhzhia, a major employer with 8,500 staff, has been forced to shut down indefinitely after suffering extensive damage from multiple Russian missile strikes. According to Oleksandr Myronenko, chief operating officer of Metinvest, the factory's owner, 17 missiles hit the site, resulting in the deaths of eight workers and injuring 31.
Similar attacks have impacted other key facilities, including ArcelorMittal Kryvyi Rih, Ukraine's largest steelworks, which announced it could not reopen after repeated strikes. Before the full-scale invasion, Ukraine's metallurgy and mining sector accounted for approximately 10% of its GDP and a third of its exports, employing over half a million people. The current damage has brought the industry's contribution to GDP close to zero, according to Myronenko.
The consequences extend beyond job losses, which could number in the hundreds of thousands, potentially triggering a humanitarian crisis and mass migration. Taxes from these steel companies have historically funded a significant portion of local government budgets, essential for maintaining city infrastructure, social services, and more. Stanislav Zinchenko, head of GMK Center, described the situation as a "catastrophic problem" for Ukraine's economy, noting that the industry was the largest investor, contributing $2 billion to $3 billion annually.
Russia has stated its attacks are aimed at preventing Ukraine from producing military hardware and earning export revenue. Oleksandr Vodoviz of Metinvest noted that attempts to restart production at Zaporizhstal were thwarted by subsequent air strikes. Even if production could resume, challenges such as damaged railways and blocked ports, where ships face a "50-50" chance of attack, complicate transportation and exports. EU import quotas on steel also present an additional hurdle.