The situation in Ukrainian metallurgy is the hardest since World War II / photo ua.depositphotos.comThe intensification of Russian strikes on industrial enterprises, energy and export infrastructure is increasingly hitting the Ukrainian economy. One of the biggest blows has been the de facto halt of steel smelting and the losses of the agricultural industry due to the blocking of ports, writes Associated Press.
According to the agency, missile attacks have halted the operation of key metallurgical enterprises, and the consequences are already extending far beyond the industry itself. In particular, "Kametstal" in Kamianske, which in 2025 accounted for more than a quarter of Ukrainian steel production, stopped after a strike by five ballistic missiles on September 5.
The enterprise produced steel and pig iron for the domestic market, in particular for construction, and also supplied semi-finished products to Metinvest's European enterprises. The shutdown of the plant has already affected related industries - construction, mechanical engineering, the mining sector, energy and logistics. And the CEO of "Kametstal" Oleksandr Tretyakov told the publication that enterprises dependent on the plant's operation may cut staff or cease operations altogether.
A separate blow is being dealt to "Ukrzaliznytsia", which largely depends on the transportation of metal, ore and other industrial cargo, AP points out.
According to Tretyakov, the current situation in metallurgy is the hardest since World War II. He recalled that the industry previously contributed about 6% of Ukraine's GDP. "It did. Now - zero," he clarifies.
The situation is complicated by EU trade restrictions. Metinvest warns that reducing Ukrainian steel's access to the European market could complicate the future restoration of production.
At the same time, Russian attacks on Black Sea ports and shipping have sharply reduced the country's export capabilities. Because of this, logistics are becoming more expensive for both industry and the agricultural sector. According to Lloyd's List Intelligence, in August the number of ship calls at Ukrainian Black Sea ports decreased by approximately 90% year-on-year. Some cargo is being redirected to the Danube and land routes, but they are significantly more expensive and have limited capacity. As a result, the losses of individual sectors are beginning to overlap.
A reduction in metal production means less exports, taxes and cargo for the railway. Problems with ports simultaneously complicate the sale of industrial and agricultural products. All of this reduces foreign currency earnings and budget revenues. Against this backdrop, the NBU forecasts a deterioration in GDP dynamics.
The Verkhovna Rada is also warning about a worsening budget situation. The head of the budget committee, Roksolana Pidlasa, stated that Ukraine is facing the most acute shortage of funds since the start of the full-scale invasion.
Due to the drop in tax revenues, it is increasingly difficult for the state to finance all planned expenditures even taking into account international support. At the same time, the country allocates about 40% of GDP to defense, so military spending, public sector salaries, pensions and social assistance remain priorities.
Thus, Russian strikes are already creating for Ukraine not only individual production losses. The halt of metallurgy, problems with ports and more expensive logistics are forming a chain effect for GDP, the budget, exports and employment.