The Ukrainian steel industry is facing serious operational and financial problems, while decisions on reopening damaged enterprises will depend primarily on Russian attacks, access to ports and trade restrictions of the European Union, said Alexander Vodoviz, head of the office of the General Director of the Ukrainian mining and metallurgical group Metinvest Group.
Speaking at the Forbes Ukraine Economic Sustainability Forum in Kiev, Vodoviz said that Ukrainian steel companies had repeatedly suffered losses, and production at Metinvest was currently halted. He added that during one week in September, Ukraine did not produce a single steel for the first time in 100 years..
It will take at least $50 million to restart the damaged blast furnace.
According to Vodoviz, it will take at least $50 million to restart the blast furnace. The furnace at Zaporizhstal, damaged as a result of the Russian attacks, will require investments of at least $ 50 million, while the blast furnace itself is estimated at about $ 500 million. The total investment needs for the restoration of Ukraine's steel industry are estimated at billions of dollars.
Vodoviz identified three main factors influencing investment decisions and the resumption of operations: the ongoing attacks by Russia, the blockade of ports restricting exports, and the actions of the EU. trade restrictions, in particular, the carbon limit, the adjustment mechanism and the reduction of steel import quotas. The resolution of these issues will determine whether it will be possible to resume production immediately, he said. он.
Metinvest calls for the creation of a support system suitable for large бизнеса
Vodoviz also called for a different approach to government support for large businesses. industrial companies, emphasizing that Metinvest is not asking for direct government funding or grants, but wants access to equal working conditions.
Metinvest has studied about 15 government programs and financing options, but most of them do not meet the scale of needs of large industrial companies.
Meanwhile, the Ukrainian Ministry of Economy and Ecology has allocated about UAH 45 billion for its programs this year, including programs previously run by the Ministry of Agriculture. About 95 billion hryvnias is currently provided for in the budget for 2027, and it is expected that about two thirds of them will be the insurance fund.
Vodoviz welcomed the introduction of war risk insurance programs for businesses, noting that such mechanisms could also affect insurance and logistics costs. However, according to him, enterprises currently operate with very short planning horizons, usually planning for a month in advance and no more than six months.
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