Performance of Ukraine's Mining and Metals Sector in 2025
After a rapid recovery in 2024, Ukraine's mining and metals sector entered a phase of stagnation in 2025. Rail freight volumes for the industry fell by 3% over the year, reaching 37 million tons. Exports of iron and manganese ore contracted by 5.5%, totaling 31.2 million tons, while exports of ferrous metals increased by 13%, to 5.8 million tons. The sector remained the primary client of Ukrzaliznytsia (Ukrainian Railways), with transport volumes of 42.8 million tons of ore and 9.7 million tons of metal, exceeding the 28.9 million tons of grain transported by the agricultural sector. This industry is a crucial source of foreign currency earnings for the nation's economy.
Industry Challenges and Problems
The export picture reveals a mixed dynamic for the sector: a decline in ore exports against a backdrop of rising ferrous metal shipments. In 2024, the industry saw a 57% surge in transport volumes due to the opening of a maritime corridor, but the situation shifted in 2025 due to various challenges. In March-April 2025, Russian attacks on the energy system caused power shortages for railways and plants, negatively impacting production.
What is causing this slowdown? One reason is the high cost of electricity and logistics, which led to the partial idling of the Inhulets Mining and Processing Plant (GZK) during the year. Furthermore, iron ore production output fell by 9% due to issues with VAT refunds and lawsuits involving the company Ferrexpo. The volume of containerized metal product shipments grew by 7.8%, reaching 46.4 thousand TEU in 2025, yet the overall situation in the mining and metals complex remained difficult.
The stagnation of Ukraine's mining and metals sector in 2025 underscores the challenges facing the industry, including external factors such as energy crises and inflationary pressures. The decline in iron and manganese ore exports points to a need for strategic changes to stabilize the sector. At the same time, the growth in ferrous metal exports may indicate some positive trends, but overall, the situation requires a comprehensive approach to restore growth momentum in the future.