Metinvest refuses new contracts amid hostilities

Metinvest, the largest steelmaker in Ukraine, announced that it will no longer accept new orders from buyers due to the months-long crisis in eastern Ukraine, which is contributing to a decline in steel production in the region.

As recently as last year, Ukraine was the fifth largest steel export country in the world, but many operations of the country's main producers were disrupted during 2014 due to hostilities in one of the most developed industrial regions of the country.

A spokesman for Metinvest said that in the current instability, it was decided to stop accepting new orders and focus on fulfilling existing contracts until the situation is cleared up. He also clarified that the company traditionally has a lot of applications for August and September.

Metinvest is owned by the richest man in Ukraine, Rinat Akhmetov, and had to restrict production at his two steel mills due to supply difficulties during the military conflict. Production at its main coke plant was temporarily suspended after artillery fire was fired at the facility.

Metinvest produced 12.4 million tonnes of steel in 2013, which is almost 40 percent of the total Ukrainian steel production. At the moment, the company is forced to abandon new contracts, since it cannot guarantee their implementation in the conditions of hostilities in eastern Ukraine, which will certainly affect the company's annual production level.