Ukraine's Capacity for Green Steel Production
A CBS News analysis highlights Ukraine's potential to become a key strategic industrial partner for Europe, particularly in the production of green steel. Despite the ongoing war, the country continues to demonstrate significant capabilities due to its resource base and expertise in the mining and metallurgical sector. Before the war in 2021, this sector contributed over 10% of Ukraine's GDP and about 33% of its exports. However, by 2024, its contribution had declined to 7.2% of GDP and 15.4% of exports, underscoring the severe challenges the industry now faces. This shift reflects the immense pressure on Ukraine's industrial heartland, which was heavily concentrated in the east and south of the country.
Ukraine possesses Europe's largest iron ore reserves and ranks among the world's top ten holders of this resource. Companies like Metinvest continue to play a vital role in the national economy despite sustaining heavy losses.
"We have lost almost 50% of our business in Ukraine. Yet, despite everything, Metinvest remains the country's largest industrial player. A strong state is impossible without a strong economy, and an economy is impossible without powerful industry," stated Yuriy Ryzhenkov, the company's CEO.
Investments and Projects for Recovery
In a major effort to support the economy and industry, Metinvest paid 18.7 billion UAH in taxes and fees to budgets at all levels in 2025. Since February 2022, the company has invested over 28 billion UAH in Ukraine and provided nearly 10 billion UAH in aid to the country, its people, and the Defense Forces. This positions Ukraine's processing industry to potentially become a crucial stage in Europe's green transition.
"The Adria project is not just about decarbonization; it's a model for a new European metallurgy," emphasized Yuriy Ryzhenkov.
Metinvest is investing in modernizing its facilities to produce DRI/HBI—iron ore feedstock for green steelmaking. A significant step is the implementation of the Metinvest Adria project, which involves building a green steel plant in Italy that will consume Ukrainian iron ore and metallurgical raw materials. This demonstrates Ukraine's ambition to become a major player in the European green steel market, which could strengthen its position during economic recovery and integration with Europe. The strategy leverages Ukraine's raw material wealth while placing its industrial future within a modern, sustainable European framework.
Given the reduced contribution of the mining and metallurgical complex to Ukraine's economy, investments in modernizing and developing new technologies like green steel production have become critically important. This will not only aid in reviving Ukrainian industry but also enhance the country's competitiveness in the European market. Successful implementation of projects like Metinvest Adria could be a vital step in integrating Ukraine into European economic structures and securing new growth opportunities in the post-war recovery period.