Russian attacks paralyze Ukraine’s economy, steel industry goes out of service

Ukraine’s infrastructure and industry have been severely damaged by Russian attacks, which have also paralyzed steel production, one of the key sectors of the country’s economy.

Financial Times reports that ballistic missiles have damaged or rendered unusable the three main steel plants still operating in Ukraine, located in the Zaporizhzhia and Dnipropetrovsk regions. As a result of the strikes, 17 workers have lost their lives.

“As of today, Ukraine no longer has a steel industry,” Oleksandr Vodoviz, a manager at the Ukrainian steel company Metinvest, which owns two of the struck plants, is quoted as saying.

The consequences of the war have also been strongly felt in other parts of the economy. Data cited by Financial Times shows that nearly half of Ukraine’s modern warehouse surface area has been destroyed, while a large portion of the damage has been recorded in just the past few months.

By striking economic and logistical infrastructure, Russia aims to limit Ukraine’s ability to keep the economy running and to sustain the war effort.

The intensification of air attacks has led the Central Bank of Ukraine to warn of a possible downgrade of the economic growth forecast for this year. GDP growth could be limited to 1.1–1.2%, compared to the previous target of 1.8%.

At the same time, Russia has increased drone and missile strikes, carrying out repeated attacks against Kyiv, as well as against economic and logistical targets in various parts of Ukraine.