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ArcelorMittal closes Ukraine's largest steel plant after Russian strikes

ArcelorMittal has closed Ukraine's largest steel plant in Kryvyi Rih due to extensive damage from Russian airstrikes, a move that further impacts Ukraine's steel sector.

  • ArcelorMittal cited four strikes in five weeks, which caused extensive damage and killed five workers, as reasons for the closure.
  • Ukrainian President Volodymyr Zelenskyy stated that Russia is expanding its attacks to include infrastructure essential for daily life.
  • Ukraine is seeking an additional $27bn from partners this year for defence spending.

ArcelorMittal, the world's second-largest steelmaker, has closed Ukraine's largest steel plant in Kryvyi Rih, central Ukraine. The multinational company informed the Ukrainian government on Friday that "safe and sustainable" operations were no longer possible following four strikes in five weeks that caused extensive damage and resulted in five worker fatalities.

This decision represents another setback for Ukraine's steel sector, which previously accounted for 15% of the country's exports. The sector has been under pressure from Russian attacks and restrictions imposed by the EU.

Ukrainian President Volodymyr Zelenskyy stated on Friday that Russia is consistently broadening its attacks to include infrastructure vital for daily life, such as datacentres and warehouses. He cited a drone strike on a McDonald's warehouse, saying that for Russia, "ordinary life in and of itself is simply a target."

Zelenskyy also indicated that the European Union and the International Monetary Fund understand the necessity of assisting Kyiv in financing its budget deficit and defence spending. Ukraine is seeking an additional $27bn from partners this year for defence, citing increased war costs, and has requested an early release of part of an EU loan.

Why this matters: The closure of Ukraine's largest steel plant highlights the increasing economic impact of Russian airstrikes on key industries and civilian infrastructure.

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