Exclusive Effective post-war reconstruction of Ukraine depends on security guarantees

With the guarantees in place, our country has significant prospects to significantly increase domestic steel consumption

The post-war reconstruction of damaged and destroyed real estate and infrastructure could be a significant boost to domestic steel consumption. That is why construction will be a driver of demand for steel products, but it all depends on the availability of strong security guarantees. Otherwise, investors will not invest and build.

Dmytro Nikolayenko, Metinvest’s Chief Commercial Officer, told this in an interview with FAQ Talks.

“Construction will have the greatest potential in terms of steel consumption. The reconstruction of housing and infrastructure requires a lot of steel. As for other industries, we need to see whether the production of cars and heavy machinery, as well as mechanical engineering in general, which were present in Ukraine to varying degrees before the war, will develop,” said the Metinvest commercial director.

Since the reconstruction will require huge investments, a prerequisite for attracting them is to provide Ukraine with sufficient security guarantees.

“In my opinion, the main issue is what kind of security guarantees will be provided, as investments require stability. It is clear that even with small guarantees, some funds will be invested in infrastructure restoration, but to attract a significant amount of investment, there must be strong security guarantees and stability,” emphasized Dmytro Nikolayenko.

Overall, our country has a great potential to increase steel consumption.

“Ukraine can consume at least 300 kg of steel per capita per year as part of infrastructure reconstruction. In the early stages, it could be more, even 400 kg. For example, China consumes about 550 kg of steel per capita per year, mainly through infrastructure construction,” the expert summarized.

As previously reported, the recovery of Ukraine’s war-torn steel industry directly depends on international security guarantees. Without reliable conditions for long-term planning, Metinvest will not be able to implement large-scale investment projects.

We remind you that the main challenges for Metinvest in 2025 are financing of modernization and green transition projects in the mining and metals sector, as well as ensuring stable demand for Ukrainian steel in the domestic market. The business also needs a delay for Ukraine to implement CBAM.