Recovery of Ukraine’s steel industry depends on security guarantees – Metinvest CEO

Without international security guarantees, the industry cannot be rebuilt, says Yuriy Ryzhenkov

The recovery of Ukraine’s war-torn steel industry depends on international security guarantees. This was stated by Yuriy Ryzhenkov, CEO of Metinvest Group, in an interview with Reuters. According to him, the company will not be able to implement large-scale investment projects without reliable conditions for long-term planning.

“We need to see what sort of conditions will be agreed to for a ceasefire or peace deal, and what sort of guarantees will be provided so that business can start investing again,” Ryzhenkov added.

At the beginning of 2022, Metinvest was producing about 14 million tons of steel per year, which was 10% of Ukraine’s GDP. After Russia’s full-scale invasion, the company lost key facilities, including Azovstal and Ilyich Iron and Steel Works in Mariupol, as well as a coke plant in Avdiivka. In January 2025, the only coking coal mine in Ukraine had to close due to the approaching front line.

Despite the difficulties, Metinvest has adapted to the new realities. In 2024, the company produced 2.1 million tons of steel, up 4% from 2023. Pig iron production increased by 3% – to 1.82 million tons. A slight increase in production of 3-5% is planned for 2025.

To reduce its energy dependence, Metinvest is investing in solar panels and gas generators. In addition, the company plans to develop a green steel project in Italy and is considering mergers and acquisitions in Central and Eastern Europe.

However, long-term investments in Ukraine remain questionable.

“We were investing billions in Mariupol and were prepared to invest even more, hoping that the Minsk agreements would stop the aggression. But then it all got destroyed in a matter of a few months. None of the agreements were obeyed,” Ryzhenkov emphasized.

Now, to restore the steel sector, we need real security guarantees. They will not only protect the Ukrainian industry but will also be a key factor in attracting foreign investors.

According to Yuriy Ryzhenkov, the main challenges for Metinvest in 2025 are financing modernization and green transition projects, as well as ensuring stable demand for Ukrainian steel in the domestic market. The business needs a delay for Ukraine to implement CBAM.