Ukraine Steel Industry Faces Major Crisis
The Ukraine steel industry is facing a severe disruption after repeated Russian missile strikes forced major steelworks to shut down, threatening jobs, exports and the economies of industrial cities.
At Zaporizhstal in Zaporizhzhia, 8,500 workers have been left without a functioning factory after four waves of Russian attacks, with two strikes taking place in August and two more in September.
Denys Maksyshko, who has worked at the plant for years, described Zaporizhstal as “the heart of the city”. He said the attacks had almost completely destroyed the equipment, leaving buildings without windows and roofs damaged by explosions.
According to Oleksandr Myronenko, chief operating officer of steelworks owner Metinvest, Russia fired 17 missiles at Zaporizhstal. Eight workers were killed and 31 were wounded.
“We’re now clearing rubble and trying to plan recovery,” Myronenko said.
Zaporizhstal Steelworks Hit by Russian Strikes
The damage at Zaporizhstal is part of a wider campaign against Ukraine’s metallurgical industry. Russian air strikes have hit Ukrainian metal plants since August, with every major facility affected and some attacked repeatedly.
The Ukraine steel industry was an important part of the economy before Russia’s full-scale invasion in 2022. Mining and metallurgy accounted for roughly 10% of Ukraine’s GDP and one-third of its exports, while more than half a million people worked in the sector.
Myronenko said the industry’s contribution to Ukraine’s GDP was now “probably close to zero”. He said all of Metinvest’s steelworks were currently out of action.
“Clearly, they’re trying to stop Ukraine’s economy and stop Ukraine from getting [export] money from abroad, from paying taxes and wages, from ensuring that cities live and people have jobs,” Myronenko said.
Ukrainian Steel Production and Jobs Under Threat
The decline of the Ukraine steel industry has already been substantial. Ukraine had 12 metallurgical plants before losing parts of its industrial heartland in the east after fighting began with Russia in 2014.
By 2018, the number had fallen to nine. Three years into the full-scale war, in 2025, only six remained. The Azovstal and Illich plants in Mariupol were among those lost after the city was captured following a months-long Russian siege.
Another major steelmaking centre affected by the latest attacks is Kryvyi Rih, the home city of President Volodymyr Zelensky. On 25 September, ArcelorMittal Kryvyi Rih, Ukraine’s biggest steelworks, said it could not reopen after repeated attacks over five weeks. Five workers had died.
The consequences extend beyond factory employees. Oleksandr Vilkul, head of the city’s Local Defence Council, said taxes from the steel sector helped finance infrastructure, heating plants, social services and nursery schools.
Stanislav Zinchenko, head of Kyiv-based consultancy GMK Center, said taxes from metal-producing companies had previously accounted for between 30% and 70% of local government spending in their host cities.
Ukrainian Steel Exports Face Further Pressure
The disruption to steel production also threatens Ukraine’s ability to export goods and generate revenue. Zinchenko said mining and metallurgy had been among the country’s biggest investors before the war, contributing an average of $2bn-$3bn annually.
The industry’s collapse could also affect Ukraine’s defence and reconstruction efforts because steel is needed for military equipment, shelters and repairs to buildings damaged during the war.
Metinvest has already attempted to restart Zaporizhstal. Oleksandr Vodoviz said a furnace was restarted but operated for only 10 hours before another air strike occurred.
Even if production resumes, Ukrainian steelmakers face further obstacles. Russian attacks on railway infrastructure have made domestic transportation more difficult, while strikes on ports have made exports increasingly dangerous.
“Ports have essentially been blocked,” Myronenko said. “Every ship is at risk of being attacked, and their chances are 50-50 – either you make it, or you don’t.”
EU steel import quotas introduced on 1 July could add to the pressure facing Ukrainian producers.
Despite the damage, Maksyshko remains hopeful about Zaporizhstal. Workers are clearing rubble and repairing equipment where possible, as they try to keep the factory alive.
“This is similar to what the military do in the trenches. Ordinary people are fighting to keep the factory alive like soldiers.”
