One metallurgy worker provides work for another 8s: why the industry should be the center of attention of the government

The Western Ukrainian Business Forum in Ivano-Frankivsk combined representatives of business, authorities and investment structures / Photo Metinvest
The role of industry in strengthening the economy and reconstruction of the country has become a key theme of Western Ukrainian Business Forum in Ivano-Frankivsk, which united representatives of business, government and investment structures. Even now, in the conditions of war and losses of enterprises, the mining and metallurgical complex together with related industries creates about 6% of GDP.

“Prior to a full -scale war, the mining and metallurgical complex together with adjacent industries created about 10% of Ukraine’s GDP. Over the past two years, the share has decreased to 5.5-5.7% due to the loss of key production capacities in the East of the country,” says the head of the Outdoor Cashivation Code. The strong industry is a driver of economic growth.

Metinvest in the war lost metallurgical combines in Mariupol and Avdiivsky Koksokhim, and was forced to suspend the work of the Pokrovsky coal group. All of these enterprises were part of a single production chain that provided thousands of people and billions of export revenues.

According to Skorsbun, one worker in metallurgy creates up to eight jobs in related sectors – transport, energy, mechanical engineering, services. In the mining industry, this figure is 1: 4. Therefore, every workplace in the industry is a multiplier of economic stability. But the development of industry requires key conditions: stable tariff and tax policy, access to markets and clear rules of game for investors.

Scorbun noted that the railway rail tariffs in Ukraine are already higher than in Poland or Slovakia. The reason is cross -subsidizing passenger transportation at the expense of industrial cargo. According to European standards, such services should be financed by the state through Public Service Obligation (PSO) – when the state orders a socially important service and compensates for its value.

Another important prerequisite is access to European markets, which is the main export direction of Ukrainian metallurgy. This requires the support of the state in promoting national producers and maintaining competitive positions in the European market.

Scorbun recalled that now the Ukrainian industry is on the verge of decarbonization – the transition to the production of steel with minimal CO₂. This requires billions of investments and switching to electrical steel technologies.

“We have huge reserves of iron ore raw materials that are practically not available in Europe. This creates the possibility of strategic synergy – Ukrainian raw materials and European investments in” green “metallurgy,” Skorbun emphasized.

He added that stable industrial policy, attracting international financing and state security guarantees will allow to double production and make industry the basis of post -war economic recovery.

Recall that in the last 5 years, the largest metallurgical enterprises of Ukraine have paid taxes and fees worth UAH 190 billion, or $ 6.2 billion. According to the results of 2024, the payment of taxes and fees of four metallurgical companies was 1.6% of revenues to budgets of all levels.