ArcelorMittal Kryvyi Rih, a major steel producer in Ukraine, has announced that it has invested $325 million in maintaining production levels since the outbreak of the full-scale war. Oleh Krykavsky, the company’s Director for Government Relations, made the announcement at the ‘Ukrainian Export: Through Challenges to the EU’ conference, which was organized by Ukrayinska Pravda. The company is facing significant challenges due to the ongoing conflict, including disruptions in supply chains and the high cost of energy.
Krykavsky emphasized that despite these challenges, the company remains committed to supporting Ukraine’s industrial sector and its economic stability. However, he highlighted that the current high electricity prices are a critical issue that needs to be addressed by the government. ‘These costs are putting a significant strain on our operations and are affecting our ability to maintain production levels,’ Krykavsky stated during his speech. The call for government action reflects the growing concerns among Ukrainian businesses about the sustainability of their operations in the face of ongoing economic pressures.
ArcelorMittal Kryvyi Rih’s investment in production is crucial for the Ukrainian steel industry, which is a key sector of the country’s economy. The company’s continued operations are essential for maintaining the domestic supply chain and supporting the country’s industrial base. However, without government intervention to reduce energy costs, Krykavsky warned that the company may be forced to cut back on production, which could have far-reaching consequences for the economy. The situation underscores the challenges faced by Ukrainian businesses in maintaining operational stability amidst the ongoing conflict and economic uncertainties.