---
title: "Crisis of Historic Scale: Ukraine's Metallurgy Faces Its Heaviest Blow"
description: "Escalating infrastructure strikes and plant shutdowns like Kametstal have triggered a crisis in Ukraine's metallurgy. Experts estimate the situation is the worst since WWII, threatening GDP and the state budget."
date: 2026-11-10T13:41:33.499Z
lang: en
url: https://xab.info/en/posts/crisis-in-ukrainian-metallurgy-heaviest-since-war
tags: [ukraine, metallurgy, economy, kametstal, war-impact, gdp]
author: "Darya Fomina"
publisher: "XAB.info"
---

# Crisis of Historic Scale: Ukraine's Metallurgy Faces Its Heaviest Blow

![A worker near a furnace at a metallurgical plant amid the crisis in Ukrainian industry](https://xab.info/media/2026/11/10/krizis-v-ukrainskoy-metallurgii-samiy-tyajeliy-s-voiny/krizis-v-ukrainskoy-metallurgii-samiy-tyajeliy-s-voiny-1.webp)

## Key Points

- The situation in Ukraine's metallurgy is recognized as the most severe since World War II.
- The Kametstal plant halted operations following a missile strike on September 5.
- Port blockades and falling metal exports are reducing real GDP growth rates.
- Ukraine's budget deficit has reached record highs amid military expenditures.

The escalation of Russian strikes on industrial enterprises, energy facilities, and export infrastructure has triggered a massive crisis in the Ukrainian economy. A key development has been the de facto cessation of steel smelting and severe losses in the agricultural sector caused by the blockade of sea ports. According to an Associated Press report, the current situation in the metallurgy industry is the most severe since World War II, exerting a devastating impact on related sectors and the country's macroeconomic indicators.

### Blow to Key Enterprises and the Shutdown of Kametstal

Missile attacks have crippled the country's most vital metallurgical production facilities. The Kametstal plant in Kamenskoe suffered particularly severe damage; in 2025, it accounted for over a quarter of Ukraine's total steel production. The enterprise came to a halt following a strike by five ballistic missiles on September 5. The plant produced pig iron and steel for the domestic construction market and also supplied semi-finished products to Metinvest's European facilities.

Kametstal CEO Oleksandr Tretiakov stated that the shutdown of the plant has already affected related sectors, including mechanical engineering, the mining industry, energy, and construction. Companies dependent on the plant are forced to cut staff or halt operations entirely. In addition, Ukrzaliznytsia is suffering serious losses, as its logistics are critically tied to the transportation of ore, metal, and other heavy cargo.

### Chain Reaction for the Economy, Budget, and Exports

The shutdown of metallurgical giants and problems with Black Sea ports have triggered a destructive chain reaction across the entire economy. According to Lloyd's List Intelligence, in August, the number of vessel calls at Ukrainian ports decreased by approximately 90% year-on-year. Rerouting cargo to land corridors and the Danube has led to a sharp increase in logistics costs. Metinvest also points to additional difficulties caused by trade restrictions from the European Union.

The reduction of metal and agricultural exports entails a drop in foreign exchange earnings, tax revenues, and state budget proceeds. Roksolana Pidlasa, head of the Verkhovna Rada Budget Committee, warned of an unprecedented funding deficit since the beginning of the full-scale invasion. Under conditions where about 40% of the country's GDP is directed toward defense, financing other protected expenditure items is becoming an increasingly difficult task.

### Macroeconomic Consequences and NBU Forecasts

The current situation directly affects the general indicators of state development. In its October inflation report, the National Bank of Ukraine forecasts that infrastructure shelling and the port blockade in the second half of 2026 will reduce real GDP growth by 1.9 percentage points. Direct foreign trade balance losses are estimated at 6.6 billion dollars.

Amid growing pressure, authorities and businesses have to look for alternative logistics routes and adapt to severe restrictions. However, experts note that without restoring basic production chains and unblocking sea routes, overcoming the current economic downturn and stabilizing budget indicators will be extremely difficult.

## Fact-Check & Sources

- [Ситуация в украинской металлургии самая тяжелая со времен Второй мировой войны, - AP](https://www.rbc.ua/ukr/news/situatsiya-ukrayinskiy-metalurgiyi-nayvazhcha-1794315188.html) - The primary source confirms all facts regarding the shutdown of Kametstal, Tretiakov's statements, and NBU macroeconomic forecasts.
- [Ситуация в украинской металлургии самая тяжелая со времен Второй мировой войны, – AP](https://www.unian.net/economics/other/situaciya-v-ukrainskoy-metallurgii-samaya-tyazhelaya-so-vremen-vtoroy-mirovoy-voyny-ap-13555374.html) - Подтверждено по источнику unian.net

## FAQ

### Why did the Kametstal plant stop operating?

The enterprise stopped working after being hit by five ballistic missiles on September 5.

### What share of GDP did the metallurgical industry previously provide?

According to Kametstal CEO Oleksandr Tretiakov, metallurgy provided about 6% of Ukraine's GDP.

### How did the situation in the ports affect logistics?

In August, the number of vessel calls at Ukrainian ports dropped by about 90% year-on-year, while alternative land and Danube routes turned out to be significantly more expensive.