ArcelorMittal, one of Ukraine’s largest foreign steel manufacturers, has completely ceased operations at its Kryvyi Rih plant following a series of Russian missile strikes that have claimed five lives and injured 17 over the past five weeks. The company anticipates a non-cash impairment charge of approximately $1 billion as a result of these disruptions.
In a statement, ArcelorMittal indicated that the decision was made with deep regret, acknowledging the extraordinary resilience of its workforce throughout the ongoing conflict. CEO Mauro Longobardo emphasized the company’s commitment to safety, stating, “We are no longer able to safely operate ArcelorMittal Kryvyi Rih.” Discussions regarding the future of the plant are ongoing with the Ukrainian government, focusing on preserving infrastructure for potential future operations once hostilities cease.
$1 Billion Impairment Charge
Since the onset of Russia’s full-scale invasion in February 2022, ArcelorMittal has provided around $700 million in financial support to maintain operations at the Kryvyi Rih facility, located in the hometown of President Volodymyr Zelensky. The anticipated impairment charge reflects the significant loss in value of the plant’s property, plant, and equipment.
Despite the expected impairment, analysts from J.P. Morgan have indicated that it is unlikely to impact the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA), although sector-wide losses may be observed in the third and fourth quarters. Supply disruptions in Ukraine could further tighten Europe’s supply of hot-rolled coil steel, potentially influencing market prices.
A Pillar of Ukrainian Steelmaking
ArcelorMittal Kryvyi Rih stands as a key player in Ukraine’s steel industry and represents a significant foreign investment in the country. As a full-cycle producer, the plant mines iron ore and processes it into finished steel, specializing in long products such as rebar and wire rod. The facility has the capacity to produce over 6 million tons of steel annually, along with substantial quantities of rolled products and cast iron.
In 2025, the plant produced 1.7 million tons of steel and 1.6 million tons of rolled products, contributing to 23% of Ukraine’s total steel output. This made it the second-largest steel plant in the country, following Zaporizhstal. The company primarily exports to the EU, the Middle East, North Africa, and the United States, generating significant revenue despite reporting a net loss last year.
Russia’s Ongoing Campaign Against Ukrainian Industry
The shutdown of the Kryvyi Rih plant follows an alarming escalation of Russian attacks on Ukraine’s metallurgical sector, particularly noted in August. Reports indicate that the three main steel plants in Ukraine, which collectively accounted for about 90% of national production, have ceased operations due to repeated missile strikes.
In 2022, the Kryvyi Rih facility was severely impacted by a missile strike that resulted in casualties and significant damage. Recent attacks have continued to threaten the plant’s operational capacity, with the latest incident reported on September 21, where missile strikes targeted industrial facilities in the Dnipropetrovsk region.
