Crises in Ukraine's Metallurgy
The Federation of Metallurgists of Ukraine (FMU) has declared a deep crisis in the country's metallurgy, primarily due to blocked seaports. In their address, the FMU emphasized that there are currently no alternatives to water routes, and the paralysis of seaports, which has been ongoing since July 2026 due to enemy attacks, significantly complicates the situation in the industry.
According to FMU information, the Danube ports and western crossings cannot compensate for the losses, as logistics through these routes are 2-3 times more expensive. Furthermore, the depths and volumes of the Danube are insufficient for loading large vessels, further complicating the export of Ukrainian products.
“Since July 2026, enemy attacks have practically paralyzed the operations of seaports. The Danube ports and western crossings do not save the industry: logistics is 2-3 times more expensive, and the depths and available volumes of the Danube are simply not enough for loading large vessels,” - Federation of Metallurgists of Ukraine.
Tariff Issues and Action Plan
The FMU also pointed out the 30% increase in tariffs by Ukrzaliznytsia, which, according to them, “multiplies on every kilometer and drives Ukrainian products out of markets.” They warned that the shutdown of factories will lead to the loss of cargo bases and revenues for Ukrzaliznytsia this year.
“The increased tariff rate will also hit Ukrzaliznytsia itself: shut down factories mean lost cargo bases and revenues for UZ this year,” - Federation of Metallurgists of Ukraine.
In response to this crisis situation, the Federation of Metallurgists of Ukraine proposed an action plan to the government, which includes:
- unblocking Ukraine's seaports;
- cancelling the 30% increase in railway tariffs by Ukrzaliznytsia;
- reducing fixed taxes until full unblocking of the ports;
- launching a support mechanism for the industry during the crisis.
“Metallurgists are not asking for unreasonable benefits. They are ready to bear some costs to maintain production. But it is important for the State to act as a partner and not to add burden at the most difficult moment,” - said FMU representatives.
The problems in metallurgy also have a broader context, as Russian aggression has negatively affected Ukraine's agricultural sector. According to the US Department of Agriculture, in 2021 Ukraine ranked 7th in wheat production, 6th in corn, 4th in barley, and 2nd in sunflower oil. Over 55% of Ukraine's territory consists of arable land, highlighting the agricultural sector's importance to the country's economy.
The situation in Ukrainian metallurgy is critical due to the lack of access to seaports, complicating product exports and negatively impacting the financial performance of enterprises. The increase in transportation tariffs also exacerbates the situation, potentially leading to production shutdowns. The government measures proposed by the FMU aim to restore stability in the industry and support the economy as a whole. In the context of the agricultural sector, these problems could have serious consequences for the country's food security, making the implementation of urgent measures extremely important.
The ongoing crisis in Ukraine's metallurgy is not an isolated issue; it mirrors the challenges faced by other sectors, particularly agriculture. Recent reports indicate that Russian strikes on Black Sea ports are expected to drastically reduce Ukrainian agricultural exports by 54%. This situation underscores the interconnectedness of Ukraine's export economy and the urgent need for comprehensive solutions. To explore the implications of these strikes on agricultural trade, visit the full article on agricultural exports.