Ukrainian steel sector initiates the creation of a fund to support the industry

SEATTLE (Scrap Monster): The Parliamentary Committee on Economic Development has agreed to a proposal from industry associations to establish a Support Fund for the steel industry, according to a report by Ukrinform.

Oleksandr Kalenkov, president of the Ukrmetallurgprom Association of Enterprises, presented the industry’s proposals at the committee meeting.

According to him, the critical situation in the industry is currently caused by several negative factors at once—the partial closure of the European market, an increase in rail freight rates, the blockade of Ukrainian seaports, and intensified Russian attacks on steel enterprises.

Under these conditions, the continued operation of the domestic steel sector is impossible without emergency state support measures. The industry association has sent a corresponding appeal to Prime Minister Serhiy Koretskyi.

According to Kalenkov, logistics, cost control, and support in both the domestic and European markets are crucial for the operational activities of enterprises. In addition, following the destruction caused by Russian strikes, there is the issue of reconstruction and securing the necessary funding.

Industry representatives are proposing the creation of an instrument similar to the Ukrainian Energy Support Fund. The funds accumulated through this mechanism will be used for emergency repairs, the restoration of steel production where possible, and promoting greater production resilience. In the future, this approach could be scaled up to other industries that have suffered widespread destruction.

As the president of Ukrmetallurgprom explained, this is not about supporting individual enterprises. When evaluating projects, consideration must be given not only to their investment attractiveness and economic feasibility. The key criteria should be the impact of investments on preserving and creating jobs, ensuring foreign exchange earnings, and replenishing the state budget. This approach, which involves assessing the impact of investments on public finances, is understandable to our foreign partners, according to Oleksandr Kalenkov.

The industry expects assistance from the relevant parliamentary committee in communicating with the government and engaging with international donors. Members of the Verkhovna Rada Committee on Economic Development supported the steel industry’s appeal; a corresponding letter will be sent to the prime minister.

As a reminder, Ukraine reduced its production of commercial rolled steel products by 8.3% year-over-year in January–July 2026, to 3.32 million metric tons. Pig iron production over the seven-month period fell by 6.1% year-over-year to 4.09 million metric tons, while steel production decreased by 5.6% year-over-year – to 4.02 million metric tons.

Courtesy: www.gmk.center