Russian Attacks on Metallurgical Plants Hit the Budget: Tax Losses May Reach Billions

Russian military attacks on the production facilities and logistics chains of Ukrainian enterprises have led to massive financial losses for the state budget. According to analytical data, during the first nine months of 2026, the treasury failed to receive about UAH 49.5 billion in tax revenues. According to experts and specialized publications, by the end of the current year, this alarming figure could rise to UAH 70 billion, and under the most pessimistic scenario, total losses will reach UAH 100 billion.

Crisis in the Mining and Metallurgical Complex

The main catalyst for the deterioration of the economic situation was the forced shutdown of operations at the largest enterprises of Ukraine's mining and metallurgical complex (MMC) as a result of systematic strikes. The Southern Mining and Processing Plant (InGOK), Zaporizhstal, Kametstal, Ferrexpo, and ArcelorMittal Kryvyi Rih have suspended operations. Such a scale of destruction and downtime creates colossal risks for the stability of filling both state and local budgets in the regions where these giants operate.

Financial Performance and Scale of Losses

The scale of losses is illustrated by figures from previous periods: in the first half of 2026 alone, Metinvest enterprises — InGOK, Zaporizhstal, and Kametstal — paid UAH 4 billion in taxes to budgets at all levels. For InGOK, a critically important budget revenue item was the fee for the use of subsoil, so the complete shutdown of mining directly collapses these revenues. At the same time, enterprises are trying to maintain salary payments to employees, supporting related social taxes.

Threats to Next Year's Budget

The crisis in metallurgy inevitably goes beyond a single industry, undermining the ability of all Ukrainian business to predict its operations and generate future tax payments. This creates serious threats to the draft state budget for 2027, which projects UAH 2.8 trillion in tax revenues. Daniil Hetmantsev, head of the Verkhovna Rada tax committee, warns that actual revenues may turn out to be UAH 90 billion lower than the government plan due to infrastructure destruction and export disruptions.

Necessary Anti-Crisis Measures

To prevent the complete collapse of key sectors and stabilize the economy, experts insist on the urgent adoption of state decisions. Enhanced air defense protection of industrial facilities, stable energy supplies, security of port logistics, predictable tax policy, access to long-term lending, and the expansion of war risk insurance instruments are required. Without a comprehensive approach, the gap between planned and actual budget revenues will only increase.