During the meeting, Tretyakov emphasized that the industry’s struggles are exacerbated by the lack of government intervention to shield domestic producers from global price fluctuations. The CEO noted that while Ukraine has the potential to be a major steel exporter, the current economic environment makes it difficult to compete effectively. He cited the rise in electricity prices as a significant burden, as energy costs account for a substantial portion of production expenses.
Tretryakov also addressed the impact of increased rail tariffs, which have raised transportation costs and reduced the competitiveness of Ukrainian steel in international markets. Additionally, the export of scrap metal, which is a byproduct of steel production, has been rising, further diverting resources from core production activities. With international demand for steel currently weak due to economic uncertainties in key markets, Ukrainian producers are facing a challenging landscape.
Prime Minister Yuliya Svyrydenko acknowledged the concerns raised by Tretyakov and other business leaders, stating that the government is committed to reviewing policies that support domestic industries. However, she acknowledged the complex nature of the issues and the need for a multifaceted approach to address the challenges facing the steel sector.