Metinvest continues to invest in Ukraine's future despite difficult circumstances

Currently, the priority area for investment in Ukraine is the modernization of Northern Mining

Even despite the difficult circumstances, Metinvest continues to invest in the future of both Ukraine and the company. This was stated by the group’s Chief Operating Officer (COO) Olexander Myronenko in an interview with Interfax-Ukraine.

He expressed his conviction that after the war, the company will make even more large-scale investments in infrastructure restoration, primarily in the country.

Currently, the group is meeting all its financial obligations. As for attracting additional funds, Metinvest is analyzing the amount of financing for specific projects both in Ukraine and abroad, and has a trade finance portfolio to secure its supply chain.

In particular, in July this year, the company announced that it had received a €23.6 million credit line for Northern Mining. The loan is secured by the Finnish export credit agency Finnvera. Deutsche Bank is the sole arranger and lender. The loan will be used to finance the purchase of equipment from Finland’s Metso Finland for a project to thicken enrichment waste.

The group is also working separately on financing options for the Adria project to build a green steel plant in Italy.

As for investments in Ukraine, the priority area is currently the modernization of Northern Mining, where the company is building a waste thickening plant. In addition, Metinvest is considering a project to modernize one of the LURGI 552 roasting machines to prepare it for the production of improved pellets for green metallurgy in the EU.

The first project is currently under construction, while the second is in the design and development phase.

As for metallurgical production, Alexander Mironenko said that the group is currently focusing on the Kametstal metallurgical plant. This year, a major overhaul of blast furnace No. 9 was carried out at a cost of $20 million, and the equipment of one of the converters in the converter shop was completely restored. In 2026, the company will continue its programs at the enterprise, blast furnace No. 1 will be completely restored, and repairs in the converter shop will continue.

“Zaporizhstal is currently undergoing routine repairs to maintain the condition of its equipment. We understand the proximity of the front line, so we cannot yet develop any large projects there until the situation stabilizes,” explained Metinvest’s COO.

Oleksandr Myronenko also noted that the European Carbon Border Adjustment Mechanism (CBAM) is an urgent issue for the company. The group understands the need to modernize equipment for the transition to green metallurgy, but certain circumstances, such as the war, do not allow this to be done at present.

The company’s COO recalled that the government had included in its European integration program a clause on the need to postpone CBAM requirements for Ukrainian producers.

“They need to be postponed for the duration of martial law plus 3-4 years so that we have the opportunity to recover after the war and begin modernization,” he explained.

In total, the green modernization of Metinvest’s assets in Ukraine, together with joint ventures, is estimated at about $8 billion.

As GMK Center reported earlier, Metinvest is gradually resuming the operation of its iron ore mines, although the situation remains difficult due to high electricity tariffs and the global market situation.