Ukraine Could Lose Half of Its Steel Production if Russia Takes Pokrovsk, Says CEO

Production could decrease due to a shortage of coking coal as Pokrovsk is home to Ukraine’s only coking coal-producing mine still under Ukrainian control, warned Oleksandr Kalenkov, CEO of Ukrmetallurgprom, during the Ukrainian Export Forum on September 25.

The loss of this vital resource would significantly impact the steel industry, which relies heavily on coking coal for production.

“For two years, we’ve been producing 6-6.5 million tons of steel, and this year we can reach 7.5 million tons. If we lose Pokrovsk, production could drop to 2 to 3 million tons,” Kalenkov explained.

Kalenkov noted that over the past two years during Russia’s full-scale invasion, Ukraine’s steel production has averaged 6 to 6.5 million tons annually. He noted that the government-controlled areas still have the potential to increase production to 12 million tons per year. However, the loss of Pokrovsk could cause production to plummet to just 2 to 3 million tons annually.

The export of metals and metal products has traditionally been a major component of Ukraine’s economy, with Ukrainian steel being utilized worldwide.

However, Russia’s invasion has severely impacted the country’s steel production sector. Numerous steel plants, including those in the Donetsk region, such as the Azov Steel Plant and the Ilyich Iron and Steel Works in Mariupol, have been destroyed. In addition, Russian forces have captured key seaports critical for exporting Ukrainian metal products, further complicating the situation.

Heavy fighting is currently taking place just 10 kilometers east of Pokrovsk, as Russian forces attempt to capture this strategically important city. Pokrovsk serves as a major logistical hub and occupies a key elevated position, making it a priority target in the area.