Ukraine War · updated 1h ago · 3 min read
Russian Strikes Force ArcelorMittal Kryvyi Rih To Suspend Production, Killing Five Workers
ArcelorMittal Kryvyi Rih halts production after four Russian strikes over five weeks. Five workers killed and multiple injured as attacks targeted the plant.
Whether damage is framed as equipment failure or fiscal impact.
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Same story, two versions
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The Kyiv Independent
“Russia launches precise strikes that damage critical equipment like blast furnaces, preventing Ukrainian steelmakers from producing pig iron”Read the original ↗
CBC
“The economic impact of the attacks is cutting tax revenue and leaving the government with a widening budget gap”Read the original ↗
One stresses industrial equipment disablement, the other highlights fiscal damage to the state.
ArcelorMittal suspends output
ArcelorMittal said it decided to suspend production at ArcelorMittal Kryvyi Rih, Ukraine’s largest steel plant, after four strikes over five weeks caused substantial damage to the plant in the southeast and killed five workers. ArcelorMittal said it informed the Ukrainian government that continued operations could not be carried out in a "safe and sustainable" manner, and the company said the latest attack occurred on September 21. ArcelorMittal also said its shutdown would be another blow to Ukraine’s steel sector, which was once among the strongest and accounted for about 15% of the country’s exports.
Ukrainian President Volodymyr Zelensky said, “The Russians are continuing to widen the scope of escalations,” pointing to an airstrike on a food warehouse used by the McDonald’s chain on Friday. Kyiv Mayor Vitali Klitschko said bodies of four people were recovered from a bus bay area after a daytime attack that hit an administrative building, and he said 46 people were injured in Friday’s attacks, 25 of whom were hospitalized.
Debate over escalation
Zelensky said, “It is important for the world to respond to all of this, and for Russia to feel the consequences of the reaction to the terrorism it pursues,” as Russian air raids damaged companies, logistics networks, port facilities along the Black Sea, and civilian infrastructure.
The Russian Defense Ministry said its forces carried out overnight drone strikes targeting defense industry facilities, logistics hubs, and ships used by the Ukrainian armed forces.
ArcelorMittal Kryvyi Rih subsidiary CEO Mauro Longobardo said, “It is with deep regret that we have concluded that we are no longer able to safely operate ArcelorMittal Kryvyi Rih,” linking the decision to missile strikes and extensive damage.
ArcelorMittal said it expected to record an impairment of non-monetary assets of around $1 billion after informing the Ukrainian government it could not resume operations safely and sustainably.
The Kyiv Independent reported that Ukrmetallurgprom president Oleksandr Kalenkov said, “We don't really have another choice. TOtherwise, we will have to stop production until the end of the war, which could last for many years, and I have doubts that we would be able to save our employees in that time,” as the steel sector called for more domestic and international support.
Economic and industrial stakes
ArcelorMittal said it expected to book a non-cash impairment charge of about $1bn, and it said the figure reflected the reduced value of property, plant and equipment at the Kryvyi Rih facility.
ArcelorMittal said it had allocated more than $700 million to its Ukrainian subsidiary to try to ensure continuity of operations since the war with Russia began four years ago.
The Kyiv Independent said the metallurgy sector contributed 7% of Ukraine’s gross domestic product (GDP) last year and employs tens of thousands of people, while it said the sector had suffered at least nine separate ballistic missile attacks since August.T
The Kyiv Independent said the steel industry warned that the knock-on effect would be felt beyond factories, with building firms needing to import more expensive steel from Europe and raising construction prices.T
Metinvest CEO’s office head Oleksandr Vodoviz told the New Voice of Ukraine that “Many people have died. We're not operating,” and he said the company’s furnaces were destroyed across Metinvest plants and ArcelorMittal Kryvyi Rih.