Workers at Zaporizhstal iron and steel works on July 22 in Zaporizhzhia, Ukraine. Jason Beaubien/NPR hide caption
Workers at Zaporizhstal iron and steel works on July 22 in Zaporizhzhia, Ukraine.
ZAPORIZHZHIA, Ukraine In this eastern Ukrainian city, a Soviet-era mural stands boldly in front of Zaporizhstal iron and steel works.
The mural shows muscular ironworkers handing a freshly forged sword to equally muscular soldiers who are rushing off to war. Today, however, Ukraine's iron industry is in rough shape because of war itself.
During much of the 20th century, a thriving industrial heartland churned in central and eastern Ukraine, fed by abundant coal mines and big, hulking steel mills. In several parts of the country, these plants still dominate the landscape, the local economy and even civic identity. Iron and steel production remains Ukraine's second-leading industry after agriculture. And prior to the Russian invasion this year, it was a major supplier of iron ore to Turkey, China and parts of the European Union.
While the war with Russia has raised serious international concern about getting Ukraine's vast production of wheat, corn and sunflower oil normally its top exports to global markets, the invasion has been even more devastating to the country's metalworks. Exports of bulk iron ore, for instance, that are shipped by the ton in massive cargo vessels have stopped entirely from Ukrainian ports.
Inside the sprawling Zaporizhstal industrial compound, the plant's giant blast furnaces normally convert tons of raw iron ore into a stream of molten orange pig iron.
But Serhiy Safonov, the manager of the blast furnace shop, says that only two of the factory's four blast furnaces are currently operational.
Employees secure and package rolls of sheet steel at the Zaporizhstal PJSC rolled steel plant in Zaporizhzhia, Ukraine, on June 30. Julia Kravchenko/Bloomberg via Getty Images hide caption
Employees secure and package rolls of sheet steel at the Zaporizhstal PJSC rolled steel plant in Zaporizhzhia, Ukraine, on June 30.
The furnaces are designed to run constantly, he says, and normally would never be shut down over their 30-year life span. But earlier this year all four furnaces had to be dialed back to what Safonov calls a "low idle" as Russian troops threatened to advance on Zaporizhzhia. Moscow's forces never reached the area, but tens of thousands of people fled. Much of the city shut down, and the factory that used to employ 11,000 workers is now operating at less than 50% of capacity.
Yuriy Ryzhenkov, the CEO of Metinvest Group, which owns the Zaporizhstal plant, says they have enough raw materials inside Ukraine to keep pumping out rolls of sheet metal and bars of cast iron. The problem is they can't get those products to market. Metinvest and other Ukrainian steel producers now have huge backlogs of processed metal sitting in Ukrainian warehouses.
"The main difficulty is the logistics," Ryzhenkov says. Traditionally, all Ukrainian steel companies, of which Metinvest is the largest, export their products via the Black Sea ports or Azov Sea ports. "At the moment," Ryzhenkov says. "The ports have been blocked by the Russians."
While a few ships carrying grain have been allowed to leave Ukraine recently, there's still no agreement to allow vessels ferrying other goods to transit the Black Sea.
Some steel and iron ore is getting sent by rail to ports in Poland and Romania, but it's a slow and expensive process. Adding to the logistical challenges, Ukraine's railways operate on a different gauge track than the Western Europeans, meaning cargo has to get transferred at the border.
"This was never envisaged as the main export route for the steel industry in Ukraine," Ryzhenkov says.
As difficult as it is to get steel to customers in Turkey, Italy and North Africa, the Zaporizhzhia factory at least is still in Metinvest's hands.
Russian and Moscow-backed separatist forces seized the company's two steel mills in Mariupol. This includes the Azovstal plant, where Ukrainian soldiers made a final stand against the Russian occupation of the city. Russian forces blew apart the mill to capture it and finally take full control of the southern port city.
While Azovstal is now better known, it was actually the smaller of Metinvest's two steel plants in Mariupol. The other, Ilyich Iron and Steel Works, spread over more ground and, with 14,000 employees, had more workers than Azovstal. Ilyich was seized by Russian troops in April. Ukrainian fighters held out at Azovstal until mid-May.
A Russian serviceman patrols the destroyed part of the Ilyich Iron and Steel Works in Ukraine's port city of Mariupol on May 18. Olga Maltseva/AFP via Getty Images hide caption
A Russian serviceman patrols the destroyed part of the Ilyich Iron and Steel Works in Ukraine's port city of Mariupol on May 18.
"At some point in time we'll come back to Mariupol and see what is the state of Azovstal and Ilyich mill and see if they can be restored," he says.
The plants were insured, "but insurance doesn't typically cover the wartime risks," he says. "And that's the big problem."
The company's lawyers are looking at ways to file a claim against the Russian Federation for billions of dollars in damages, Ryzhenkov says but making a shrug, as if it's a longshot.
There isn't a definitive tally of monetary damages in Mariupol, but the human suffering after months of bombardments has been extensive. Ukrainian officials say more than 20,000 civilians were killed in the Russian siege of the city. U.N. officials have documented a lower number of civilian casualties but still estimate the number killed in the city is in the thousands.
With the city under Russian control, Metinvest has urged customers globally not to buy steel from Mariupol. The company says there's a "high probability" that the occupying Russian forces are selling off some of the more than 200,000 tons of steel products Metinvest had stored at its two plants there.
Earlier this year, Metinvest was paying its idled employees two-thirds of their salaries, including at the Mariupol plants now controlled by the Russians. But in June the company had to lay off thousands of workers.
With limited revenue, two of its largest factories gone, and few options to export their industrial products to customers overseas, Ryzhenkov says the company right now is just focused on survival.
"We are making sure that whatever we still have control over we keep intact," he says.
"And we are waiting for Ukraine to kind of win the war and take back what belongs to it." But he's under no illusions that that is going to happen quickly.
The challenges facing Metinvest are similar for other Ukrainian steelmakers and industrial firms, particularly in the east of the country.
The Soviet-era mural in front of Zaporizhstal iron and steel works in Zaporizhzhia. The mural depicts iron workers handing a sword to soldiers. Jason Beaubien/NPR hide caption
The Soviet-era mural in front of Zaporizhstal iron and steel works in Zaporizhzhia. The mural depicts iron workers handing a sword to soldiers.
"There are a number of really problematic trends that will compound over time," says Andrew Lohsen, who up until last year was based in Ukraine as a monitor and an analyst for the Organization for Security and Cooperation in Europe.
"One of them is the fact that these industries are highly dependent on coal that is mined behind enemy lines now or close to the fighting."
He says the industrial capacity of Ukraine right now is severely strained because so much of its manufacturing sector is in or near the intense fighting in eastern Ukraine.
This has been part of the problem for Metinvest. Prior to 2014, Metinvest was based in the eastern Ukrainian city of Donetsk. When Russian-backed separatists seized Donetsk in 2014, Metinvest relocated its headquarters to Mariupol, a city on the Sea of Azov. This year, when Russia grabbed Mariupol, the headquarters were displaced again, this time moving to the capital, Kyiv.
Ryzhenkov at times sounds weary talking about the impacts of the war, the export bottlenecks, the assets stolen by the Russians, the layoffs. But when asked if the company might be able to somehow restart operations in Mariupol or elsewhere near the fluctuating front lines, he answers quickly.
"The position of our shareholders is very clear on this," he says. "We will not operate in any occupied territory, under any occupational regime." He insists they'll operate only in areas under Ukrainian control.
Hanna Palamarenko contributed to this report.
See more here:
Ukraine's iron and steel industry is in rough shape because of war - NPR
- Now It's Germany's Turn to Frustrate Allies Over Ukraine - The New York Times - March 6th, 2024 [March 6th, 2024]
- Nato is growing reckless over Ukraine and Russias German military leak proves it - The Guardian - March 6th, 2024 [March 6th, 2024]
- Putin the only winner as Poland's Tusk flounders over Ukraine border fight - POLITICO Europe - March 6th, 2024 [March 6th, 2024]
- Ukraines Zelensky struggles to draft more troops as Russia advances - The Washington Post - March 6th, 2024 [March 6th, 2024]
- Ukraine Slams the Door on Bringing Russian Gas to Europe - Bloomberg - March 6th, 2024 [March 6th, 2024]
- Ukraine first lady declines State of the Union invitation - The Hill - March 6th, 2024 [March 6th, 2024]
- Ukraine war: Germany under pressure to explain intercepted phone call - BBC.com - March 6th, 2024 [March 6th, 2024]
- Poland sees its most violent protest yet by farmers and supporters against Ukraine imports, EU rules - The Associated Press - March 6th, 2024 [March 6th, 2024]
- Ukraine hits behind frontlines as Odesa blasts rock Greek PM visit - Yahoo! Voices - March 6th, 2024 [March 6th, 2024]
- Even Without Speaker Johnson, Democrats Could Act to Save Ukraine Today - Kyiv Post - March 6th, 2024 [March 6th, 2024]
- Key highlights of proposed bipartisan Senate package for border security and Ukraine - The Associated Press - February 5th, 2024 [February 5th, 2024]
- Senate releases border package with aid to Ukraine, Israel; House says DOA - Turn to 10 - February 5th, 2024 [February 5th, 2024]
- What's in the bipartisan Senate package to aid Ukraine, secure U.S. border - Yahoo News - February 5th, 2024 [February 5th, 2024]
- Putin casts the Ukraine conflict as a fight for Russia's survival as he seeks reelection - The Associated Press - February 5th, 2024 [February 5th, 2024]
- US must not interfere Biden's advisor on possible dismissal of Ukraine's Commander-in-Chief - Yahoo News - February 5th, 2024 [February 5th, 2024]
- Dozens detained as Russian soldiers' wives call for their return from Ukraine - Yahoo News - February 5th, 2024 [February 5th, 2024]
- Senators race to release their package of border policies and aid for Ukraine and Israel - CNBC - February 5th, 2024 [February 5th, 2024]
- Ukraine war live updates: World Court rules in favor of Kyiv on genocide case; Zelenskyy says EU aid sends clear signal to both Moscow and the U.S. -... - February 5th, 2024 [February 5th, 2024]
- Ukraine made surprisingly realistic decoys of weapons to fake out Russia - Business Insider - February 5th, 2024 [February 5th, 2024]
- Russia forced to use ancient tanks as materiel fails en masse in Ukraine, veteran says - Yahoo News - February 5th, 2024 [February 5th, 2024]
- Russia Is Denied a Seat on the U.N. Human Rights Council - The New York Times - October 10th, 2023 [October 10th, 2023]
- Opinion | We Need to Reframe the Debate Over Ukraine - POLITICO - October 10th, 2023 [October 10th, 2023]
- U.S. Envoy to NATO Says Aid to Israel Won't Come at Ukraine's Expense - The New York Times - October 10th, 2023 [October 10th, 2023]
- Army to Congress: Do your job so we can help Israel and Ukraine - POLITICO - October 10th, 2023 [October 10th, 2023]
- DFC Commits $250 Million to Strengthen Food Security in Ukraine - DFC - October 10th, 2023 [October 10th, 2023]
- What Ukraines operation against Russian-annexed Crimea means ... - openDemocracy - October 10th, 2023 [October 10th, 2023]
- Russia recruits Serbs and Cubans for war in Ukraine - Ukrainian World Congress - October 10th, 2023 [October 10th, 2023]
- Pressure Grows on Germany to Give Ukraine Long-Range Missiles - The New York Times - October 10th, 2023 [October 10th, 2023]
- The bruising artillery battle in Ukraine has left a scar that is visible ... - NPR - October 10th, 2023 [October 10th, 2023]
- Military briefing: the advance of Ukraine's 'mosquito navy' - Financial Times - October 10th, 2023 [October 10th, 2023]
- The fate of Ukraine funding lies in the balance with speaker's race - NPR - October 10th, 2023 [October 10th, 2023]
- INTERVIEW: Planning the post-invasion return of citizens to Ukraine - UN News - October 10th, 2023 [October 10th, 2023]
- Ukraine and Impacted Countries Crisis - Emergency Appeal n ... - ReliefWeb - October 10th, 2023 [October 10th, 2023]
- Digital Collaboration between UK and Ukraine | BCS - BCS - October 10th, 2023 [October 10th, 2023]
- Called Up: Sergii Kryvtsov Called Up by Ukraine National Team - Inter Miami CF - October 10th, 2023 [October 10th, 2023]
- Are Ukraine's Airstrikes Inside Russia Strategically Effective in the ... - Foreign Policy - October 10th, 2023 [October 10th, 2023]
- Today's D Brief: Hamas-Israel war; US reaction; Rain arrives in ... - Defense One - October 10th, 2023 [October 10th, 2023]
- 5 policy issues the leaderless House faces, from Ukraine to NDAA to ... - NPR - October 10th, 2023 [October 10th, 2023]
- The Miles of Obstacles Slowing Ukraines Counteroffensive - The New York Times - June 28th, 2023 [June 28th, 2023]
- Russia-Ukraine War: Putin, Projecting Control, Tries to Contain Fallout From Mutiny - The New York Times - June 28th, 2023 [June 28th, 2023]
- With Wagner's Future in Doubt, Ukraine Could Capitalize on Chaos - The New York Times - June 28th, 2023 [June 28th, 2023]
- Biden refers to Ukraine as Iraq when asked about Putin - The Hill - June 28th, 2023 [June 28th, 2023]
- Kremlin Says Only Hits 'Military' Targets After Ukraine Restaurant Strike - The Moscow Times - June 28th, 2023 [June 28th, 2023]
- Dark, damp and deathly: inside a hospital on Ukraine's front line - The Economist - June 28th, 2023 [June 28th, 2023]
- Russia mutiny revives stagnant talk of increasing Ukraine aid in Congress - POLITICO - June 28th, 2023 [June 28th, 2023]
- Opinion | Putin, Prigozhin and the Danger of Disorder - The New York Times - June 28th, 2023 [June 28th, 2023]
- Switzerland Blocks Sale of Leopard 1 Tanks Bound for Ukraine - Yahoo News - June 28th, 2023 [June 28th, 2023]
- Ukraine Situation Report: U.S. Replenishes Kyiv's Bradley Fighting Vehicle Force - The War Zone - June 28th, 2023 [June 28th, 2023]
- Prigozhin surrendered too quickly, occupiers in Ukraine did not have time to lose heart Ukraine's Foreign Minister - Yahoo News - June 28th, 2023 [June 28th, 2023]
- Netanyahu considering visit to Ukraine, Kyiv's envoy to Israel says - The Jerusalem Post - June 28th, 2023 [June 28th, 2023]
- On this part of the eastern front, Russia is still on the attack - The Washington Post - June 28th, 2023 [June 28th, 2023]
- Cheap Russian drone a menace to Ukrainian troops and equipment - The Jerusalem Post - June 28th, 2023 [June 28th, 2023]
- Kremlin 'Welcomes' Vatican Peace Efforts Over Ukraine - The Moscow Times - June 28th, 2023 [June 28th, 2023]
- Why Ukraines Counteroffensive Is Off to a Slow, Bloody Start - The New York Times - June 28th, 2023 [June 28th, 2023]
- Russia-Ukraine war latest: Kremlin reportedly threatened Wagner families as soldiers marched to Moscow - Yahoo News - June 28th, 2023 [June 28th, 2023]
- New Books on the Russian Invasion of Ukraine - The New York Times - June 28th, 2023 [June 28th, 2023]
- An illustrated explanation of Russia's deportation of Ukrainians, from the war zone to a remote camp - USA TODAY - May 31st, 2023 [May 31st, 2023]
- Taiwan Ambassador Says Ukraine's Success Against Russia Will Help Deter China - The New York Times - May 31st, 2023 [May 31st, 2023]
- Russia reports hits on oil refineries and town near Ukraine - Yahoo! Voices - May 31st, 2023 [May 31st, 2023]
- Oligarch's Bell 427 Is The Ukrainian Military's Latest Helicopter - The War Zone - May 31st, 2023 [May 31st, 2023]
- How Ukraine Followed the ISIS Playbook - Newsweek - May 31st, 2023 [May 31st, 2023]
- Ukraine Situation Report: Kyiv To Hold First Person Video Drone 'Super Bowl' - The War Zone - May 31st, 2023 [May 31st, 2023]
- U.S. Adds Aid to Ukraine to Deliver Ammunition for Drones and Artillery - The New York Times - May 31st, 2023 [May 31st, 2023]
- Russian Guards Beat and Tortured Kherson Prisoners, Leading to Deaths - The New York Times - May 31st, 2023 [May 31st, 2023]
- Equipment for Ukraine drawn from Kuwait wasnt combat-ready, IG says - Yahoo News - May 31st, 2023 [May 31st, 2023]
- UN considers comparing drone attack on Moscow with constant shelling of Ukraine inappropriate - Yahoo News - May 31st, 2023 [May 31st, 2023]
- Opinion | 'America First' reasons why the U.S. should support Ukraine - The Washington Post - May 31st, 2023 [May 31st, 2023]
- Ukraine plays down talk of Bakhmut gains being start of counteroffensive - Reuters - May 12th, 2023 [May 12th, 2023]
- EU tells ministers they must recalibrate China policy over support for Russia - The Guardian - May 12th, 2023 [May 12th, 2023]
- United in Music: Over 500 young musicians perform Ukraines winning Eurovision entry - Classic FM - May 12th, 2023 [May 12th, 2023]
- Ukraine has choice of targets as it plots counteroffensive - The Guardian - May 12th, 2023 [May 12th, 2023]
- Russia denies reports of Ukrainian breakthroughs along front lines - Reuters - May 12th, 2023 [May 12th, 2023]
- Ukraine war: Inside the fight for the last streets of Bakhmut - BBC - May 12th, 2023 [May 12th, 2023]
- Ukrainian historian Serhii Plokhy: This may not be the last chapter of the Russian empire, but its an important one - The Guardian - May 12th, 2023 [May 12th, 2023]
- Russian woman convicted of desecrating grave of Putins parents - Al Jazeera English - May 12th, 2023 [May 12th, 2023]
- Putin runs out of "adequate responses", worst for Russia about to begin Ukraine's National Security and Defence ... - Yahoo News - May 12th, 2023 [May 12th, 2023]
- Russia-Ukraine war at a glance: what we know on day 443 of the invasion - The Guardian - May 12th, 2023 [May 12th, 2023]
- Ukraine war: WFP chief Cindy McCain says grain deal with Russia needed to feed world - BBC - May 12th, 2023 [May 12th, 2023]
- A Ukrainian counterattack has the Wagner boss sounding alarms on a counteroffensive in 'full swing,' claiming Zelenskyy played everyone - Yahoo News - May 12th, 2023 [May 12th, 2023]
- Russia says it repelled surge of Ukrainian attacks in the east - Reuters - May 12th, 2023 [May 12th, 2023]